CREATING SUSTAINABLE
SOLUTIONS TOGETHER
Corporate Responsibility 2022

1

OUR FOCUSMESSAGE FROM THE CEOABOUT COOPER STANDARD

3
4Celebrating Milestones Along Our Journey

6

Governance7

Global Footprint

12

Products & Services

13

Financial & Operating Performance

14

Awards & Recognition

15

Materiality & Stakeholder Engagement

17

Cooper Standard’s ESG Goals

20

WINNING IN THE WORKPLACE

23

Talent Strategy

24

Workplace Health & Safety

35

Community Involvement

40

ENHANCING PRODUCT VALUE

46

Innovation, Materials & Product Lifecycle

47

Product Quality & Safety

54

Customer Trust & Satisfaction

59

RESPONSIBLE BUSINESS

62

Business Ethics & Integrity

63

Business Continuity

69

Responsible Sourcing & Human Rights

72

Climate Change, Energy, Emissions & Waste

79

Data Privacy, Cyber Security & Digitization

85

APPENDIX

94

Our History

94

Key Metrics

95

GRI / SASB Content Index

100

Financial Statements

106

2-3
Cooper Standard’s* 2022 Corporate Responsibility Report covers calendar year 2022. This report contains Standard Disclosures from the Global Reporting
Initiative (GRI) Sustainability Reporting Standards, and Sector Standards from the Sustainability Accounting Standards Board (SASB), both of which canbe found in the index. This report has not been externally assured. For more information, contact corporateresponsibility@cooperstandard.com.
*Cooper Standard is also referenced as “the Company,” “CPS,” “we,” “our” and “us” in this report.

3

MESSAGE FROMTHE CEO
2-22
Last year we launched our updated Purpose statement, CREATINGSUSTAINABLE SOLUTIONS TOGETHER. These four simple words bringsignificant meaning to our business and clearly represent our passion asa Company.

Jeff Edwards and other Global Leadership Team
members at a Cooper Standard technology event

Creating: we are developing game-changing advancements inmaterials science and product innovations optimized to meet theunique needs of the markets we serve.

aesthetics and optimize the complex fluid architectures of EVs to help

Sustainable: we are positioning Cooper Standard for long-termdeliver superior performance and increased range. We are using advanced

success with a focus on reducing our environmental footprint.
Solutions: we work tirelessly to deliver quality products andservices to meet our stakeholders’ evolving needs.
Together: we strive to be the partner of choice of our
stakeholders to create a better tomorrow.
The cornerstone of our business is our strong culture and outstanding
team. Our employees strive for excellence in all parts of our business andcontinue to achieve world-class safety results and deliver world-classquality products and services to our customers.

digital analysis to consistently design quality solutions while reducing
the need for physical samples, helping drive sustainable development
and speed to market. We are innovating products that can be madefrom recycled materials and using artificial intelligence to improve
manufacturing efficiencies, reducing waste and energy consumption.
Our dedication to excellence enables us to embrace more opportunities,
helping ensure a sustainable future for our Company and stakeholders.
I am pleased to share our 2022 Corporate Responsibility Report andthe progress we have made on our long-term goals supporting
environmental, social and governance material topics.

The auto industry has weathered many challenges and is in the midstof a seismic shift with the transition to electric vehicles (EV). We believethat this market shift offers many opportunities, and our team continues
to strategically transform our Company for a sustainable future. We areinventing many new lightweight, low-carbon solutions to enhance vehicle

JEFFREY EDWARDS
Chairman and CEOABOUT
COOPER STANDARD

2-1

In This Section

Important Links

Cooper Standard is a leading global supplier of systems and components

Governance

Global Footprint

Global Footprint

Sealing Systems

Products & Services

Fluid Handling Systems

for sealing and fluid handling systems in diverse transportation andindustrial markets. Our approximately 23,000 employees, in morethan 120 facilities across 21 countries, are at the heart of our success,continuously improving our business and surrounding communities.
Everything we do is aligned with our Mission – to Be the First Choice of
Stakeholders We Serve. We strive for world-class excellence and live byFinancial &Operating Performance

Industrial & Specialty Group
2022 10-K

our Purpose: Creating Sustainable Solutions Together.

Awards & Recognition

We have a history of producing award-winning and patented technologies

Materiality &Newsroom Email Alerts

for over 60 years. Our workforce is leading the way by producing lightweight

Stakeholder Engagement

2022 Proxy Statement

solutions using advancements in materials sciences and manufacturing

ESG Goals

processes. We are driving innovation through strategic partnerships witheducational institutions to build our world-class talent.
NYSE : CPS

5

Throughout this report, we bring awareness to the ethical, environmental,
philanthropic and economic impact from Cooper Standard over the past
year. This report shares with stakeholders our plans to meet industry
challenges, while staying true to the deliverables that drive us. We will
share inspirational stories about how our culture drives our businessand impacts the communities where we work and live. Our team cares
about the positive impact our Company can have on people and theplanet. We will also share and celebrate the milestones we are making
towards our commitments to the highest standards of quality and ethicalpractices. Each year this report evolves to further align with shifting market
requirements around the world, aiming to provide transparency for all.
As we progress in these efforts, we will set new goals in 2023 thatembrace how we are evolving for a new future.
CREATING SUSTAINABLE SOLUTIONS TOGETHER

Launched in 2021, CS Connect is Cooper Standard’s primary

Cooper Standard’s updated Purpose, Mission, Values and Capabilities

and only digital communication tool available to all employees,

leverage our culture and agility for future growth and development
and align with the evolving transportation and industrial markets. Our

including hourly team members. It provides real-time local,
regional and global communications in 29 languages using our

Purpose is comprised of four foundational words:

mobile app or online website. Since our launch, we are proud

Creating: To develop the next, game-changing advancements inworkforce (exceeding benchmark adoption levels). Many facilities

to share that we have achieved over 75% adoption of our global

materials science and product innovations to be the leaders in mobility.

have even reached 100% adoption.

Sustainable: To preserve our planet and business viability by reducing our

CS Connect offers employees access to resources and provides

environmental footprint for better communities, people and societies.

a space to network and share inspirational articles ranging from

Solutions: We deliver high-quality products and services to ourstakeholders, so they can trust us as their preferred partner who is readyto deliver.
Together: We partner with all our stakeholders to create a better tomorrow.

stories about how our team is empowering communities tosafety highlights and best practices.
As this platform grows and matures, we will remain focused on
publishing content that will help reinforce our values, business
imperatives and a strong, transparent culture where employees
feel they belong and are valued. We will look for ways to promote
the milestones that Cooper Standard achieves and share ways
for others to get involved. We will aim to foster collaboration,communication and enhance productivity through CS Connect
as we find ways to build a better tomorrow.

6

ABOUT COOPER STANDARD

CELEBRATING MILESTONESALONG OUR JOURNEY
In recognition of our material topics, milestones help us reflect on what we have accomplished to better understand where we are going. CooperStandard has celebrated many milestones in 2022 that we are proud to share:First Quarter 2022

Third Quarter 2022

‫ ظ‬We kicked off the new year with the launch of our Company’s‫ ظ‬We earned Environment + Energy Leader Award for our Fortrex™

updated Purpose, Mission, Values and Capabilities to provide
guidance and alignment of our team worldwide. The results werematerials platform.
‫ ظ‬Cooper Standard and Industrie Saleri Italo S.p.A. (Saleri), an Italian-outstanding because each of our regional locations embraced abased company, announced a joint development agreement on an

culture that strives for a better tomorrow.

innovative dynamic fluid control technology for the battery electric‫ ظ‬Cooper Standard was named as one of the 2022 World’s Most EthicalCompanies for the third consecutive year by Ethisphere .
®

®

vehicle market. This was the beginning stages of developing a novel
family of high-performance coolant fluid management devices.

Second Quarter 2022

Fourth Quarter 2022

‫ ظ‬Shannon Quinn was named Vice President, Chief Commercial and‫ ظ‬As a leader in sustainability, we attended a 2022 Supplier Appreciation

Strategy Officer. With an engineering background, she has over 25

event by Nissan North America in Nashville, Tennessee. This

years of experience in the automotive industry. As a Global Leadership

recognition was given to suppliers who achieved high levels

Team member, she offers valuable insight for the development ofof sustainability performance based on their EcoVadis score, acommercial strategies for our global operations.

worldwide provider of environmental, sustainability and governanceratings for global supply chains.
‫ ظ‬Cooper Standard earned an Society of Plastics Engineers award forour thermoplastic thermal management solution.
‫ ظ‬Cooper Standard was added to the 2023 list of Newsweek’s America’s
Most Responsible Companies for the fourth consecutive year.

7

ABOUT COOPER STANDARD

GOVERNANCE
2-9, 2-10, 2-13
Cooper Standard’s Board of Directors has adopted Corporate Governance Guidelines that provide a framework for the effective governance of theCompany. The guidelines address matters such as the responsibilities of the Board, the Board’s composition, the responsibilities of the lead director,
director independence, the Board membership criteria, Board committees and Board evaluation. The Board’s Nominating and Governance Committee
is responsible for overseeing and reviewing the guidelines at least annually and recommending any proposed changes to the Board for approval. The
Corporate Governance Guidelines, Certificate of Incorporation and Bylaws,
the charters of the Board committees and Board of Directors Code of
Conduct provide the framework for the governance of the Company andare available on our website.

KEY GOVERNANCE PRINCIPLES
The Board has adopted governance practices, structures and

BOARD LEADERSHIP STRUCTURE
The Board is comprised of 10 members who are fully engaged andpossess the key skills and experiences that are integral to the Company’s

policies that it believes promote Board independence and theinterests of shareholders. These practices, structures and policies
include, among others:

success. All but one of the members are independent, as defined‫ ظ‬Independent Lead Director;

by the Board’s Corporate Governance Guidelines, which reflect the‫ ظ‬Nine of the 10 directors are independent;

independence standards of the New York Stock Exchange and the U.S.

‫ ظ‬Minimum stock ownership requirements for directors

Securities and Exchange Commission.

and executives;

The Board’s leadership structure currently includes a combined chairman‫ ظ‬Board committees composed of independent directors;

and chief executive officer (CEO) role with a non-employee lead director,‫ ظ‬Annual Board evaluations;as permitted by our Corporate Governance Guidelines.

‫ ظ‬Board considers diversity when evaluating prospective directors;‫ ظ‬Board comprised of members with the key skills and experiences
integral to the Company’s success;‫ ظ‬Board meets regularly in executive sessions;‫ ظ‬Strong governance framework for the oversight of ESG matters;‫ ظ‬Clawback policy covering cash and equity; and‫ ظ‬Anti-hedging and anti-pledging policy.

8

MANAGEMENT COMMITTEESAt Cooper Standard, we have numerous management committees thatprovide cross-functional oversight to our strategic priorities:
Chairman & Chief Executive Officer
Jeff Edwards serves as chairman of the Board of Directors as well as
our CEO. The Board believes that this structure is in the best interestsof our stockholders because it takes into consideration the importance‫ ظ‬Global Leadership Team;‫ ظ‬Carbon Neutrality Action Committee‫ ظ‬Cooper Standard Foundation Board of Trustees;of having a chairman with in-depth knowledge of, and experience in,‫ ظ‬DIB Action Group

our industry. It also promotes communication between management‫ ظ‬Enterprise Risk Management Committee;

and the Board, in particular with respect to the Board’s oversight of the‫ ظ‬Global Benefits Plan;

Company’s strategic direction. In addition, this structure helps ensure‫ ظ‬Global Communications Council;

that the non-employee directors’ attention is devoted to the issues ofgreatest importance to the Company and our stockholders. Our Board
periodically reviews its determination to have a single individual serve as
both chairman and CEO.

‫ ظ‬Global Ethics and Compliance Committee;‫ ظ‬Global Manufacturing Council;‫ ظ‬Global Product Safety Council;‫ ظ‬Global Quality Council;‫ ظ‬Global Sustainability Council; and‫ ظ‬Global Technology Council.

We have a strong, independent and highly experienced lead director withwell-defined responsibilities that include:
Lead Director
David Mastrocola serves as Lead Director, a position that is elected by
the non-employee members of the Board upon the recommendationof the Nominating and Corporate Governance Committee. The Board
believes that the role of the Lead Director, together with the existence ofa substantial majority of independent directors, fully independent Board
committees and the use of regular executive sessions of non-employee
and independent directors, achieves an appropriate balance between
the effective development of key strategic and operational objectives
and independent oversight of management.

‫ ظ‬Presiding at all meetings of the Board at which the chair is notpresent, including executive sessions of the independent directors,
and communicating with management concerning the substance ofsuch meetings and sessions;‫ ظ‬Serving as liaison between the chair and the independent directors;‫ ظ‬Approving the Board’s meeting agendas, schedules and information
sent to the Board;‫ ظ‬In consultation with the Compensation Committee, assisting theBoard with its evaluation of the performance of the CEO; and‫ ظ‬If requested by major stockholders, ensuring that he is available for
consultation and direct communication.

9

COMMITTEE STRUCTURE
The Board has a robust committee structure consisting entirely of independent directors with oversight of various types of risks. Each committee
is organized by and conducts its business pursuant to a written charter adopted by the Board. Our Board of Directors currently has four standing
committees with the following key responsibilities:
Audit Committee

Nominating & Corporate Governance Committee‫ ظ‬Select independent registered public accounting firm

‫ ظ‬Identify and evaluate individuals qualified to become members of the‫ ظ‬Oversee accounting and financial reporting processes and the annual
audit and quarterly review of financial statements

Board consistent with criteria approved by the Board‫ ظ‬Select or recommend to the Board the director nominees to stand‫ ظ‬Oversee compliance with legal and regulatory requirements

for election by the stockholders or to fill vacancies on the Board and‫ ظ‬Review and evaluate the independence, qualifications andboard committee memberships

performance of our independent auditors and the performance of
our internal audit function‫ ظ‬Review and oversee our system of internal controls regarding finance,accounting and legal compliance‫ ظ‬Oversee environmental, social and governance (ESG) disclosures,processes and controls‫ ظ‬Develop and ensure compliance with corporate governanceprinciples and practices applicable to the Company‫ ظ‬Review our legal compliance and ethics programs and policies‫ ظ‬Oversee the annual performance evaluation of the Board andits committees‫ ظ‬Ensure stockholder engagement on ESG matters‫ ظ‬Ensure the Board has the skills, expertise and continued education

Compensation Committee

necessary to oversee the successful execution of the Company’s‫ ظ‬Review and approve corporate goals, objectives and other criteria

ESG priorities

relevant to the CEO’s and the other executive officers’ compensation‫ ظ‬Evaluate the performance of all executive officers and determine
their compensation‫ ظ‬Establish overall compensation philosophy, review and approve
executive compensation programs, and assess related risks‫ ظ‬Review and approve any employment or severance arrangement withexecutive officers‫ ظ‬Review and approve equity-based compensation plans and awards
made pursuant to such plans‫ ظ‬Oversee the Company’s employee benefit plans, including thedelegation of responsibility for such programs to the Company’s
Benefit Plan Committee‫ ظ‬Integrate select ESG goals and milestones into executive
compensation plans

Innovation & Business Development Committee‫ ظ‬Provide insights regarding megatrends affecting the industry,
and together with management, assess any impacts on the
Company’s strategy‫ ظ‬Advise management regarding the Company’s innovation andbusiness diversification strategy, implementation plans andperformance targets‫ ظ‬Review and advise management regarding the Company’scommercialization strategy for new products in its core market,
adjacent markets and business model innovations

10

BOARD MEMBERSHIP CRITERIA

highest personal and professional ethical standards, integrity and the

In identifying and evaluating the nominees for director positions, theNominating and Corporate Governance Committee considers theapplicable requirements for directors under the Exchange Act and the
NYSE listing rules. In addition, the Nominating and Corporate GovernanceCore Values of the Company. Candidates are also evaluated on their ability
to consider and balance the legitimate interests and concerns of theCompany’s stockholders and other stakeholders effectively, consistently
and appropriately in reaching decisions.

Committee considers other criteria it deems appropriate, which may

The Company’s Corporate Governance Guidelines also require that thevary over time depending on the Board’s needs. Nominating criteria

potential pool of Board candidates reflects diversity in gender, race,include automotive or manufacturing industry experience, general

ethnic background, country of citizenship and professional experience.

understanding of various business disciplines (e.g., marketing, finance,

The Board evaluates everyone in the context of the Board as a whole,etc.), the Company’s business environment, educational and professionalwith the objective of retaining a group that can best enhance thebackground, analytical ability, diversity of experience and viewpoint, ESG

Company’s success and represents the interests of stockholders and otherskills and expertise and willingness to devote adequate time to Board

stakeholders through sound judgment.

duties. Director candidates should demonstrate commitment to theGender(2) Undisclosed

Race

Age

(1) Undisclosed(6) 60–64

Tenure(1) 70+(5) Male(3) 10+(4) 0–5(1) 2+ Ethnicities

Average Tenure

Average Age(3) Female(1) Black/ African
American764(1) Hispanic(6) White(3) 65–69(3) 6–9

BOARD REFRESHMENT & DIVERSIFICATIONThe Company recognizes the value of differing perspectives on our Board of Directors. We regularly add directors to bring new perspectives and ideas
into the boardroom. Four out of the 9 independent directors have joined our Board within the past three years, including two of the women directors.
The Nominating and Corporate Governance Committee and the Board are continually looking for ways to advance in these areas and leverage its
diversity of thought to further the strength of our Company.

11

BOARD’S ROLE IN RISK OVERSIGHT

ESG BOARD GOVERNANCE FRAMEWORKThe Board, as a whole and through its committees, has responsibility for

The Board is responsible for the oversight of our ESG strategy. It ensures

the oversight of risk management, while management is responsible

the integration of ESG risks and opportunities into the Company’s long-for the day-to-day management of risks to the Company. The effective

term strategy and enterprise risk management, and delegates certain

oversight and management of the risks facing the Company are supported

ESG oversight responsibilities to its committees as set forth below:

through a top-down and bottom-up communication framework that
includes a robust enterprise risk management approach and active
participation from leaders across all functional areas of the Company, alongwith our Global Leadership Team and our Board, fostering an appropriate
culture of integrity and risk awareness throughout the Company.

Audit Committee
ESG disclosures, processes and controls, and their assurance ensuring:‫ ظ‬ESG disclosures (both qualitative and quantitative) are investor gradeand follow appropriate ESG frameworks and/or standards;‫ ظ‬Processes and controls are in place to ensure ESG disclosures areaccurate, comparable and consistent; and‫ ظ‬Whether independent assurance is required.
Compensation Committee
ESG accountability:‫ ظ‬Integration of select ESG goals and milestones into executive
compensation plans
Nominating and Corporate Governance Committee
ESG engagement, board composition and education ensuring:.
‫ ظ‬The Company’s ESG story being effectively communicated toinvestors and other stakeholders;‫ ظ‬ESG skills and expertise on the Board; and‫ ظ‬ESG Board education.
The full Board receives regular updates on key ESG topics according to a
standard Board calendar. Updates on governance, ethics and complianceoccur every quarter to the Audit Committee, two times per year to theNominating and Corporate Governance Committee and annually to thefull Board. In addition to reporting on our progress, we regularly invite
expert speakers to Board meetings to report on emerging trends in our
evolving global landscape.

12

ABOUT COOPER STANDARD

GLOBAL FOOTPRINT
2-1, 2-6, 2-7
A detailed location list is available on our website.
Regional Revenue Composition by Product(2022 % of Sales)

20%
Europe

18%

58%

Asia
Pacific

North
America

4%

South
America

Sealing Systems
Fuel and Brake Delivery Systems
Fluid Transfer Systems

Contingent

49%

Employees

27%
17%

21 COUNTRIES

120+ FACILITIES

7%~23K EMPLOYEES
includes contingent workers
North
AmericaSouth
America

EuropeAsia
Pacific

13

ABOUT COOPER STANDARD

PRODUCTS & SERVICES
2-6
Cooper Standard develops quality components for the passenger car
and light truck market, as well as advances materials science solutions
to meet the needs of our automotive and diverse industrial customers.
As a result of our focused approach, Cooper Standard holds a leadership
position in each of our core automotive product lines: sealing systems
and fluid handling systems (which includes our fluid transfer and fueland brake delivery business) in all powertrains. Cooper Standard’s
comprehensive expertise and proven thought leadership differentiates
the Company from the competition. Our Advanced Technology Group(including our Applied Materials Science and Industrial and Specialty
businesses) maximizes the value of the Company’s materials scienceinnovations in a wide range of markets, including footwear, aviation, andbuilding and construction.

AUTOMOTIVE & TRANSPORTATIONInternal Combustion

Hybrid ElectricBattery Electric
Building & Construction

Footwear

14

ABOUT COOPER STANDARD

FINANCIAL &OPERATING PERFORMANCE
Despite ongoing unprecedented challenges and disruptions in ourour customers, delivering quality products on time and supporting

industry, Cooper Standard remains focused on delivering value to all

their strategic initiatives and objectives with our technology andour stakeholders by increasing our operating efficiency, improving ourinnovation. Furthermore, we have maintained our focus on improving

profitability and cash flows and delivering world-class products andprofitability across the Company. Through lean initiatives, improved

service. In 2022, we remained committed to upholding our Core Value

operating efficiencies, SGA&E reduction and realization of savingsof Commitment to Excellence by achieving 98% in green customer

from past restructuring actions, we were able to deliver $105 millionscorecards for product quality and 97% for program launches. Evenin sustainable cost reductions in 2022. We also realized significant

more importantly, we had another outstanding year for employee

benefits from enhanced commercial agreements we were able tosafety. Our safety incident rate was 0.33 per 200,000 hours worked,

negotiate with our customers and suppliers to offset the impacts fromwell below the world-class benchmark of 0.57; 25 plants had perfectmaterials cost inflation now and in the future. As a result, we were able

safety record of zero incidents. As a result, we have developed strong

to deliver improved financial results. Full year 2022 net loss improved byrelationships with our customers that we believe will position Cooper$107 million compared to 2021 and adjusted EBITDA improved by $46

Standard for long-term success.

million on a year-over-year basis. For additional information, reference

Our manufacturing operations are running as efficiently as they
ever have and we continue to fulfill our end of the bargain withTargeted European plant
restructuring initiatives

Further global overhead andSGA&E rationalization

the Company’s full financial report in the 2022 10-K filed with the U.S.
Securities and Exchange Commission.

Continue leanmanufacturing initiatives

Maintain laser focus on
overall fixed costs controls

15

ABOUT COOPER STANDARD

AWARDS & RECOGNITION
2-28
We are proud of the global impact we have on our communities, as a partner supporting our customers and as a global supplier. In 2022, we received
recognition through a variety of awards that demonstrate our dedication to driving progress in the following categories aligned with our goals:
SUSTAINABILITYINNOVATION

2022 & 2023 Newsweek’s America’s Most Responsible Companies:

2022 SPE Automotive Innovation Awards: winners for an automotive

Cooper Standard was added to the 2023 list for the fourth consecutive

innovation from the Society of Plastics Engineers (SPE) for ouryear. Each year, the top 500 most responsible companies are selected as

Thermoplastic Thermal Management solution for battery electric vehicles.

corporate leaders for prioritizing environmental, social and governanceresponsibilities. This list is based on scorings, reports, independent
surveys and strategic programs supporting sustainability initiatives. It is astrong example of our commitment to ethical business practices.

2022 Mobility Innovation Awards: Cooper Standard was recognized
as an “Honorable Mention” during the 2022 Society of Automotive
Analysts (SAA) Mobility Innovation Summit, acknowledging automotive
leaders pushing the limits in lightweighting and vehicle technology

One of the 2022 World’s Most Ethical Companies : recognized byadvancement. Our patented award-winning Fortrex™ was one of the top

Ethisphere®, a global leader in defining and advancing the standards

five honorees out of 50 total entrants in the lightweighting category. Thisof ethical business practices, as one of the 2022 World’s Most Ethicalyear’s entries were identified for creating solutions that are evolving with

Companies®. This is the third time Cooper Standard has been recognized

the changing pace of mobility.

®

since 2020 and is one of only six honorees in the automotive industry. In
2022, 136 honorees were recognized spanning 22 countries and 45 industries.

General Motors 2021 & 2022 Supplier of the Year: for the sixth year ina row, Cooper Standard won the GM Supplier of the Year award. Award

2022 Environmental + Energy Leader Award: for Fortrex™ lightweight

winners are selected for meeting General Motors expectations andmaterials platform as “Top Product of the Year” for excellence in improved

outlined guidelines of superior quality and performance.

environmental and/or energy management.
Leader in Sustainability: Nissan North America recognized CooperStandard as a leader in sustainability at their recent 2022 SupplierAppreciation Event. This recognition was given to suppliers who achieved
high levels of sustainability performance based on their EcoVadis score,a worldwide provider of environmental, sustainability and governanceratings for global supply chains.

MEMBERSHIPS & ASSOCIATIONS
Automotive Industry Action Group
Manufacturers Alliance for Productivity & Innovation
Business Ethics Leadership Alliance, Ethisphere®

16

DIVERSITY, INCLUSION & BELONGINGMANUFACTURING

2022 Ford Motor Company WIN (Widening the Inclusion Network)

2022 Diamond Plants: internal program that recognizes high-performingAward: for the progress we’ve made towards our initiatives in diversity,

plants annually who exceed manufacturing requirements. In 2022, 19 ofinclusion and belonging. This program is designed to further expand

our facilities were awarded as 2022 Diamond Plants for high performancediversity efforts with suppliers through collaborative discussion, coachingin this year’s operational categories. Another 26 plants earned either aand mentoring.

Platinum, Gold or Silver rating, giving Cooper Standard over 80% of total
plants ranking on the Diamond maturity path.

OUR PEOPLE
Angela Greiner, who was recognized as a 2022 STEP Ahead Honoree foraccomplishments in bringing innovative technologies to the production
floor and building the foundation for outstanding quality levels.
Soma Venkat, Ph.D., who was named a finalist for the 2022 Michigan CIO

2022 Kaizen Awards: internal program that acknowledges teams whoare “changing for the better” by making significant lean advancements
in manufacturing. On a quarterly basis, plants are evaluated and leadersscore teams who find better ways to optimize equipment, streamline
operating processes and reduce waste and cost.

of the Year ORBIE Awards by the Michigan CIO Leadership Association.
Soma is one of 24 technology leaders selected from over 100+ nominees
for success in leadership and innovation. This year’s finalists wereselected based on the business value they’ve created through technology
innovation, the size and scope of their responsibilities and overall
engagement from the community.
Ramsey Changoo, who was featured in Savoy Magazine’s “2022 Most
Influential Black Executives in Corporate America”. He was recognizedamong 300 prestigious executives for the positive impact he’s madeREGIONAL RECOGNITION
Guangzhou, China: GAMC Quality Improvement (IGA) Third Prize
Yantai 2, China: SGM Annual Supplier Silver Awardthroughout his career. Honorees were selected based on community

Wuhu, China: JLR Safety Delivery Awardoutreach, influence, career growth and academic achievement. This

Dangjin (Sealing), Korea: GM 2022 Supplier Quality Excellence Award

recognition speaks highly of his outstanding leadership and impact as a

Atlacomulco, Mexico: Cooper Standard Quality Award (Gold)mentor and co-lead of our Diversity, Inclusion and Belonging action group.

Cartago, Costa Rica: Cooper Standard Quality Award (Platinum)
El Jarudo (Juarez), Mexico: Cooper Standard Quality Award (Silver)Tarazona, Spain: Ford Q1 Nomination

Stay tuned to all our announcements by signing up for Cooper Standard Newsroom Email Alerts on www.cooperstandard.com.

17

ABOUT COOPER STANDARD

MATERIALITY &STAKEHOLDER ENGAGEMENT
2-29, 3-1, 3-2

GLOBAL SUSTAINABILITY COUNCIL

Our corporate responsibility efforts are the most impactful when we focus

Our Global Sustainability Council demonstrates our focus on sustainabilityon the issues that matter most to our business and to our stakeholders.

and corporate responsibility. This cross-functional council provides

We refine our approach and set our future trajectory by regularly

executive level oversight for the Company’s sustainability strategy andengaging with various internal and external stakeholder groups, including

ensures alignment and integration with operational business goals andour employees, customers, suppliers, investors and the communities

stakeholder priorities.

where we live and work.

Managed by an executive chair, with membership from Cooper Standard

We seek to ensure meaningful engagement with stakeholders through a

subject matter experts, the council takes a holistic look at the Company’svariety of engagement methods, including conversations, forums, surveys

environmental, social and governance (ESG) initiatives, tracks rapidly

and community outreach, and we identify the priority topics, challenges

evolving best practices and further develops long-term goals to driveand opportunities. By conducting regular materiality assessments, weworld-class ESG performance. Leadership positions within the council arehave dedicated, formal checkpoints for our sustainability strategy andalso assigned to each material topic toreporting efforts.

ensure ESG is considered and integrated

We conducted our first materiality assessment in 2016, and in 2021

throughout all aspects of our business.

completed our third assessment. This process, in line with best practices,

Cooper Standard’s longtime commitment

helps ensure we are managing and reporting on the sustainability issues

to sustainability has positioned us wellmost important to our industry and stakeholders, and helps us guideto tackle the biggest challenges of our

future business priorities, strategies and goal setting efforts.

time, as well as innovate new processes,

In 2022, we focused on identifying actual and potential negative andpositive impacts of our business on the economy, environment andpeople, and we look forward to sharing these impacts throughout thisreport and in the future.

products and materials, like our Fortrex®
materials platform, to meet stakeholders’current and future sustainability needs.

18

Our most recent materiality assessment identified seven clear priorities for Cooper Standard and our external

Socialstakeholders: Business Ethics & Integrity; Climate Change; Diversity, Inclusion & Belonging; Employee
Engagement & Talent Recruitment; Energy & GHG Emissions; Innovation; and Product Lifecycle. This report

1. Employee Engagement& Talent Development

27

addresses these top issues, as well as topics identified in our secondary tier, across environmental, social and

2. Diversity & Inclusion		

31

governance and product-related topics.

3. Workplace Health & Safety35

4. Labor Relations		

72

5. Human Rights		

74

6. Community Involvement40

7. Public Policy			21

8. Wellness 			
9. Indirect Economic Impacts

Importance to External Stakeholders

17

Product

22

23
2

13
5

10 1

3

11
12

15

6
19

18

54

13. Responsible Sourcing

76

14. Customer Trust& Satisfaction		

59

15. Responsible Minerals

77

17. Ethics & Integrity		

63

18. Business Continuity		

69
87

Environmental

20

9

Third Tier

12. Product Quality & Safety

20. Digitization			

26

8

51

19. Information & Data Security 85

25

16

11. Product Lifecycle		

Governance

14
7

47

16. Supplier Diversity 		

424

10. Innovation			

Secondary Tier

Importance to Cooper Standard

Top Tier

21. Energy & Emissions		

82

22. Climate Change		81

23. Operational Waste 		83

24. Water 			81

25. Air Quality 			26. Biodiversity 			19

FORMALIZING OUR APPROACH
We identify ways to embed sustainability throughout our organization and formalize our approach to ESG. In 2022, we formalized our ESG governancestructure and management system by outlining a simple yet effective structure that will enable sustained progress against our ESG initiatives, goals
and ambitions.

Regular summary updates: document topic

Material Topic Owners

definitions, key performance indicators, relevant

subject matter experts for strategy

internal / external changes and action plans toand execution of a material topic

achieve long-term goals
Quarterly review: evaluate progress toward achievement

Sustainability Council
development, implementation, prioritization,
goal setting and monitoring of ESG initiatives

Global Leadership Team (GLT)
executive-level oversightof ESG initiatives

Board of Directors
oversight of Company’s
ESG strategy

of long-term action plans, address emerging risks andopportunities (internal and external) and ensure crossfunctional alignment of ESG priorities

Quarterly GLT meeting updates: ensure adequate oversight of our
ESG initiatives, alignment and integration with the Company’s strategy

Annual Board review: update key ESG topics according to the standard Board
and Board committee calendars

20

ABOUT COOPER STANDARD

COOPER STANDARD’S ESG GOALS
Our third environmental, social and governance (ESG) materiality

Our Global Leadership Team was engaged in the materiality processassessment was completed in 2021 through an objective third party firm.

and findings, which allowed us to re-evaluate our ESG goals andCooper Standard identified seven clear priorities following the results oflong-term targets to ensure they align with our strategic objectives

the assessment:

and evolving business needs. These long-term targets address our‫ ظ‬Business Ethics & Integrity;

management approach and performance across ESG and people-‫ ظ‬Climate Change;‫ ظ‬Diversity, Inclusion & Belonging;‫ ظ‬Employee Engagement & Talent Recruitment;

related activities that have been deemed most material to our business.
Each year we evaluate our goals, and report progress accordingly. By
consistently evaluating and reporting progress to our ESG goals, we aretransparent about our key performance indicator (KPI) progress for our‫ ظ‬Energy & GHG Emissions;most material ESG topic areas. Our goal setting process helps ensure‫ ظ‬Innovation; andwe provide information to our stakeholders in a comparable way and‫ ظ‬Product Lifecycle.

informs key decisions for our business.
Our commitment to addressing ESG issues makes our team, partnerships
and business stronger. Effective ESG processes and practices are
critical to attracting the strongest talent, maintaining a robust supply

ESG LEADERSHIP GOALS
Our commitment to addressing ESG issues makes our team,partnerships and business stronger. In 2022, we furthered ourcommitment to our ESG initiatives by introducing strategic ESG
metrics performance as a component of our annual incentive planbase and developing innovative, cost-effective solutions that meet ourcustomers’ evolving needs. Amidst ongoing change and challenges, wehave worked to maintain our goals to grow stronger and focus on thesedrivers of long-term value creation for the health of our business. We lookforward to continuing our progress to help fulfill our Purpose of Creating
Sustainable Solutions Together.

covering officers. Performance against these strategic ESG metrics
and associated goals determines 15% of funded annual incentive
amounts. The addition of ESG goals to our annual incentive plan

MEASURING ANNUAL PERFORMANCE

reinforces our commitment to achieving our long-term sustainability

Goal progress can be found in the beginning of each topic section. Baseline performance for 2019

targets and supports delivery of value to all our stakeholders. For
more information on our annual incentive plan, please see CooperStandard’s 2022 Proxy Statement.

is indicated with a blue bar and 2022 performance is displayed numerically below the scale.
2021

Goal achieved
Goal exceeded

2022

21

WIN N ING I N T H E WO RK PL ACE
ACHIEVE WORLD-CLASS PERFORMANCE IN

TALENT STRATEGYBUILDING AWORLD-CLASS SAFETY CULTURE

Continue to meet or exceed world-class

Expand our existing functional and Leadership

By 2023, each facility will have improved their

We will achieve 30% of facilities certified tolevel of internal fill (66%) for our director level

Colleges, launch additional functional colleges

safety balanced scorecard score by 15% fromISO 45001 by year-end 2021, and 100% by 2023.

leaders and above.

in finance and information technology, anda 2019 baseline.

further enhance our overall learning anddevelopment opportunities by 2024.

Continue to move toward a goal of 50%

Increase women in leadership roles todiversity on our Senior Leadership Teamreflect the percentage of women in the

succession plans by 2025.1

Company by end of 2027.

COMMUNITIES WHERE WE WORK & LIVE

Increase U.S. racially underrepresented

Increase U.S. racially underrepresented

Annually engage employees and their

populations in leadership roles to reflect thesalaried populations in alignment withfamilies equivalent to 50% of our workforce

percentage of U.S. racially underrepresented

market representation by 2027.

GIVING BACK TO

populations in the Company by end of 2027.

E N H AN C I N G PR O D U CT VA LUE
EMBED SUSTAINABILITYDRIVING PROACTIVE EFFORTS TO HELP

THROUGHOUT OUR DAILY BUSINESS ACTIVITIESDELIVER WORLD-CLASS PRODUCT QUALITY & SAFETY

Commit to linking 75% of our new innovations

Implement our innovative materials

Reduce the percentage of potential

Decrease our quality incidents per billion

to improved sustainability outcomes in theand product solutions on half of all battery

safety-critical issues reaching customers

by 35%.

production, use or end-of-life phases.

electric vehicles on the road (including

by 50% by 2023.

hybrid vehicles) by 2023.

LISTEN TO THE VOICE OF THE CUSTOMERTO MEET OR EXCEED THEIR NEEDS AND EXPECTATIONS

Achieve 98% of green or yellow customerscorecards by 2023.

1

Formal succession planning process was not completed in 2022

22

RE S PON S I B L E B U S I N ES S
MAINTAIN A WORLD-CLASS REPUTATION FORCONDUCTING HONEST, ETHICAL & RESPONSIBLE BUSINESS PRACTICES
Ensure and validate that 100% of employees

Foster an environment where 100% of

Foster an environment where 100%

Foster an environment where 100% ofknow where to find the Code of Conduct andemployees will feel comfortable reportingof employees never feel pressured to

employees believe their concerns about

policies by 2023.

misconduct if they observed it by 2023.1

compromise values by 2023.2

unethical behavior or misconduct will be fully
investigated by 2023.3

STRENGTHEN & IMPROVE OUR INFORMATION SECURITY
PROCESSES, DATA & INFRASTRUCTURE
Provide annual training on our phishing data

Provide formal cyber security training for 100%

Implement third-party cyber security

security practices for 100% of Cooper Standardof Cooper Standard employees who work withassessments for all known vendors who

employees who work with our systems by end

our systems by end of 2022.

pose critical or high risk to Cooper Standardof 2022.

systems or information by end of 2022.

IMPLEMENT SCREENING EFFORTS

REDUCE OUR IMPACT

Reach 100% response rate on supplier

By 2023, 100% of our direct material Grow

Decrease our solid waste generated by 25%

Commit to have 100% waste diversion rate

Sustainable Assessment Questionnaire fromsuppliers will have completed a self-by 2025.

globally, by 2025.

our direct materials Grow suppliers by 2023.

assessment with respect to compliance
Lower our Scope 1 and Scope 2 GHG

Reduce our operational energy consumption

emissions indexed to sales by 15% by 2025.

(Scope 1 and 2) indexed to sales 15% by 2025.

WITH OUR GROW SUPPLIERS

with our Supplier Code of Conduct, which
includes human rights topics.4

ON THE ENVIRONMENT

Source our electricity from 100% renewableenergy sources, by 2025.5

In 2022, we updated these metrics to better reflect the survey question on which the Goal is based. The survey question states, “If I were to observe misconduct, I would be willing to report it".
In 2022, we partially restated this goal and updated metrics to better align with corresponding survey questions and the classification of a "favorable" response.
3
In 2022, we updated this goal and the corresponding metrics to better reflect the survey's assessment of employee perceptions of Organizational Justice.
4
In 2022, we revised the language used in our Grow supplier SAQ compliance goal to more accurately reflect the assessment requirements.
5
We have decided to move away from this goal as we reassess our approach to renewable energy
1

2

WINNING IN
THE WORKPLACE

We believe in the power of creating a workplace culture where our
employees can thrive in all aspects of their lives. Our employees are ourmost important asset, so we take action to attract, develop, engage,retain and recognize world-class talent. We aspire to be an employerof choice by fostering a vibrant and inclusive culture that values andrespects the perspectives of all employees. Our commitment to Safety
First inspires us to create a physically and psychologically safe workplacethat allows us to invest in our employees’ growth, development and longterm success. We are committed to protecting the well-being of our teamand relentlessly work towards achieving zero safety incidents throughour Total Safety Culture. We also support our employees by giving backto the communities where we work and live. In this section, we showcase
our dedication to the workplace culture, talent attraction and retention,
diversity, safety and community engagement that strengthens our worldclass reputation.

In This Section

Important Links

Talent Strategy

Diversity, Inclusion &Workplace Health & Safety
Community Involvement

Belonging Policy
Cooper Standard Foundation

24

WINNING IN THE WORKPL ACE

TALENT STRATEGYAt Cooper Standard, we believe in the power of creating an inclusive andsupportive environment to retain and attract the best talent. Our talent
drives our performance, helps us achieve our business objectives andshapes our workplace culture. Every Cooper Standard employee brings

ACHIEVE WORLD-CLASS PERFORMANCE IN

TALENT STRATEGY
Key:

2021

2022

their unique background and expertise to our organization, and we
recognize our role in providing a positive work environment that fosters
engagement, productivity and alignment toward our overall Purpose andMission. We empower our employees by providing them with the tools

Continue to meet or exceed world-class

Expand our existing functional and Leadershiplevel of internal fill (66%) for our director level

Colleges, launch additional functional colleges

leaders and above.

in finance and information technology, andfurther enhance our overall learning andand training they need to thrive in their roles, to consistently improve

development opportunities by 2024.

and to become leaders within our organization. By increasing employee
66%

engagement, we strengthen our culture and further build the foundationof continuous feedback and talent development. At Cooper Standard,

80.8%

who we are is defined by the culture we have built together, rooted in the

delayedvalues we hold true and the Capabilities that outline our behaviors.
Continue to move toward a goal of 50%

Increase women in leadership roles to reflect

diversity on our Senior Leadership Teamthe percentage of women in the Company

succession plans by 2025.1

by end of 2027.

paused1

15.9%

Increase U.S. racially underrepresented

Increase U.S. racially underrepresented

salaried populations in alignment withpopulations in leadership roles to reflect themarket representation by 2027.

percentage of U.S. racially underrepresented
populations in the Company by end of 2027.
11.4%

11.4%

12.5%

1

Formal succession planning process was not completed in 2022

25

Talent Acquisition
Our employee attraction strategy aims to cultivate a top-tier workforce
and talent pipeline by creating a safe, respectful and inclusive work
environment, supporting employee development and offering competitive
benefits. Our talent acquisition strategy is built on a strong talent pipeline
to remain competitive in the increasingly dynamic job markets. We lookfor new ways to enhance and grow our talent pipeline for the future bycultivating invaluable institutional knowledge, while supplementing ourworkforce with new ideas and skills. We work to create relationships withpotential applicants, including those not currently active in the job market,
through participating in events that support and promote the future global
manufacturing workforce. These initiatives include:‫ ظ‬Hosting Manufacturing Day events at our facilities for students andcommunity partners to showcase modern manufacturing and inspire
the next-generation workforce to pursue manufacturing-related careers;‫ ظ‬Supporting STEM (Science, Technology, Engineering and Math)education through our regional STEM Affinity Groups that leverage
employee-led volunteer programs to inspire student achievement
OUR APPROACH
3-3
Our talent strategy focuses on attracting, developing, engaging,retaining and recognizing world-class and diverse employees, and ourorganizational structure was designed to meet the needs of our businessobjectives while giving our employees the resources and support theyneed to succeed. Our Senior Vice President and Chief Human Resources
Officer manages Cooper Standard’s talent strategy. Through regular
updates to the Global Leadership Team (GLT), which is led by our
Chairman and CEO, we consistently and effectively communicate talentstrategy initiatives and programs throughout our organization. Our
Human Resources (HR) organization is responsible for developing ourtalent and diversity strategies, and our GLT is responsible for reviewing,
approving and prioritizing these strategies and initiatives. Our Board of
Directors also receives an annual report about talent strategy, initiatives
and performance.

and interest in STEM careers; and‫ ظ‬Participation as a founding member of the Michigan Mobility Talent
Consortium that supports and sponsors initiatives to fill the talentpipeline in Michigan for high tech jobs and skillsets.
In a post-pandemic world, we have adapted to host recruiting andonboarding meetings and programs virtually. Our interview training
and resources site through Cooper Standard University provides ourhiring leaders with access to training on behavioral-based interviewing
techniques, how to recognize and minimize unconscious bias andunderstanding the value of diverse backgrounds and experiences. We
also developed and published interview guides based on our CooperStandard Capabilities Model along with interview checklists and tip
sheets. Our Talent Acquisition team connects with human resources
professionals with recruiting responsibilities through virtual meetings
that facilitate the sharing of recruiting best practices, new tools andtechnology and updated processes.

26

Employee Benefits and Wellbeing
Cooper Standard attracts and retains employees by offering a competitive
salary and benefits package, and a culture that values the interestsand passions of every employee to help improve inclusion and senseof belonging. While the specific benefits offerings are unique to eachWith the increase of virtual meetings, especially in a hybrid working
environment for our office employees, we have implemented adefault within scheduling to encourage wellness breaks between
meetings. Some of our plants have also established special work cells toaccommodate individuals with physical disabilities.

country, common offerings may include paid time off, comprehensive or

Further, we provide additional policies and programs for employees, which

supplemental health care benefits, risk benefits (life insurance, accidentalvary in form and structure by country and location, including the following:

death & disbursement insurance or disability benefits), educational‫ ظ‬Flex-time;assistance, retirement plans, discount programs, and other benefits. We
regularly analyze how our total rewards package aligns to the externalmarket, and to the needs of our employees, in all regions.
In 2022, we enhanced our physical and emotional wellness solutions
available to U.S. employees to provide holistic support and identified new
solutions for 2023 which will provide employees access to affordable legal
and identity protection coverage in support of financial wellness.

‫ ظ‬Remote working opportunities;‫ ظ‬Employee assistance programs offered to employees in Brazil, Canada,
France, Mexico, UK and the U.S. (each offering a variety of confidential
employee and family support services, and other resources);‫ ظ‬Supplemental life and/or disability insurance to certain employee
groups in Canada, China, Italy, Poland and the U.S.; and‫ ظ‬Various additional voluntary benefits at group rates (including voluntary
critical illness benefits available to certain employee groups in China andvoluntary accidental, hospital indemnity, critical illness, legal assistanceand identity theft protection benefits available to U.S. employees).

27

Early Career Programs
We offer several programs designed to appeal to students and talent thatare in the early stages of their career:‫ ظ‬Apprenticeships offer talented employees the opportunity to attend
college while building critical trade skills;‫ ظ‬Internship opportunities provide exposure to the organization andpotential careers;‫ ظ‬Co-op opportunities with select universities to supplement students’
academic curriculum by developing their abilities to learn newprocesses, troubleshoot and resolve issues in an “on-the-job” setting; and‫ ظ‬College graduate opportunities where we offer entry-level positions
and trainee positions within Cooper Standard in areas such as humanresources, manufacturing and engineering.
Every career path at Cooper Standard is unique, which is why we tailor
opportunities to a variety of talent pools. We provide career opportunities
for military veterans and those who are transitioning from active service.
The Michigan Veterans Affairs Agency (MVAA) recognizes Cooper Standard
as a Veteran-Friendly Employer. You can read more about our efforts tobuild and foster a diverse workforce under Diversity & Inclusion.

SPARTANBURG
APPRENTICESHIP PROGRAM

Talent Development & Performance Management404-2
We invest in professional development to allow us to meet everchanging
and complex business needs. During challenging years, we are remindedof the importance of acquiring and retaining top talent and giving them
the resources and support that they need to grow as people and as
Cooper Standard employees. Employee development opportunities are
critical elements of our engagement and retention strategy, and we placea high priority on developing self and others through internal and external
educational opportunities, mentoring and coaching, feedback, exposureand stretch assignments. Formal performance management, talent
identification, succession planning and learning and development tools
foster growth in our workforce. We deliver value to all the stakeholders weserve when we continuously build and strengthen our workforce.

Finding skilled technicians familiar with unique plastic extrusion
processes is often best accomplished by growing talent fromwithin. One of our apprenticeship programs in Spartanburg,
South Carolina plant has a robust apprenticeship program thatoffers talented employees the opportunity to attend college whileworking to learn new skills. The new Injection Molding program
combines 2,000 hours of work experience with 144 classroom
hours. There are a total of three programs, including tooling andindustrial maintenance currently registered by the Departmentof Labor in Spartanburg. Four skilled employee graduatescurrently hold key positions in the plant with over 75 years ofcombined service.

28

We value the contributions of every employee and take responsibility

Individual development planning remained a strong focus in 2022 andfor creating a positive work environment that fosters engagement,

every Cooper Standard employee is encouraged to create an IDP in

productivity and alignment toward our overall Purpose and Mission. Our

partnership with their manager. To develop each employee’s IDP, we use

performance management process strives to maximize productivity anda learning model that includes experiential learning, social learning andinnovation by supporting employees’ efforts to reach their full potential.

formal learning that guides employees to identify and evaluate specific

We designed this process to enable and empower employees to aligndevelopment actions. These development actions help employees attaintheir efforts in a manner that contributes to the organization’s goals. We

their goals and make employees responsible for managing and reviewing

equip employees with tools to track their progress toward their goals, as

progress with their manager. In 2022, we began measuring and reporting

well as to help identify and remove any barriers to their performance. Our

the number of employees with an IDP to increase exposure and encourage

process supports frequent, high-quality performance and developmental

additional employees to take part in developing an IDP with their manager.

discussions, which contribute to our culture of continuous feedback andimprovement, while preparing and holding managers and individuals
accountable for these discussions.

Our Talent Management strategy also relies on successful talent
identification and succession planning. We use performance
management tools to help us identify, recognize and develop high-Our Development Planning resources site through Cooper Standard

potential and high-performing employees. In addition to succession

University, our learning and development platform, contains a series ofplanning for all senior leadership positions, we prioritize succession

eLearning courses and job aids to enable employees to take ownershipplanning for our Global Leadership Team (GLT). We identify idealof their individual professional development. The site content provides

experiences, critical leadership capabilities and key rotations needed toinsight into Cooper Standard’s development planning process, including

prepare each GLT candidate for these important leadership roles.

how employees can create their formalized individual development plan
(IDP), how to request feedback and how to start career conversations with
their manager.

We understand that our employees are our best source of talent, and ourinternal fill rate demonstrates our ability to recognize and retain strong
talent across all levels of our organization. Despite talent headwinds in
2022, we demonstrated strong succession. In 2022, our internal fill rate for
Directors and above was 80.8% and 59.3% for Manager level.

99.93%
of salaried employees received
a performance review in 2022
2021: 99.7%

29

Cooper Standard University
Cooper Standard University (CSU) was developed with the mission
to provide high-quality, targeted and diverse learning opportunities
that support and promote employee development and organizational
effectiveness. We use competency modeling and gap analyses tocontinuously develop more efficient and effective processes to deliver
training to our employees. We offer over 10 course catalogues for a variety

goal of expanding our existing colleges (Leadership, HR, Manufacturing,and Product Development) by adding new programming, advancing
accessibility of our offerings, acquiring a catalog of new eLearning courses
and made new content available to our entire salaried organization.
Due to challenges faced in 2022, we made the difficult decision to delay
the launch of additional functional colleges, but we are still planning toenhance our overall learning and development opportunities by 2024.

of topics including communications, leadership, career development andIn addition to Cooper Standard University for our salaried employees, ourdiversity, inclusion and belonging. In 2022, we added 244 new courses

Building a Talented Organization (BTO) program manages training for our

to our learning management system including 233 eLearning courses.

manufacturing teams. Our BTO program provides global standardized

Our training hours delivered through CSU for salaried employees has

training that range from ergonomics to safely operating machinery. Read

increased by 4,608 hours since 2020. We also made progress toward ourmore about our BTO program in Workplace Health & Safety.

In 2022, through the Product Development College, we developed aseries of live training to socialize the 4C and 4P strategies to all productdevelopment employees.
‫ ظ‬4P is the Sealing Strategy:
Product / Process / Programming / Partnership

ENABLING INNOVATION
THROUGH PRODUCTDEVELOPMENT COLLEGE‫ ظ‬4C is the Fluid Strategy:
Convey / Communicate / Control / Connect
We provided targeted training on the major technical advancements
related to these strategies. Through these trainings, we enable theevolution of our organization towards new technologies related to electricvehicles. For example, a lighter, recyclable, aesthetic evolution and a
new system linked to the electric vehicle battery and our maturity path
towards full virtual validations, ultimately eliminating physical validations.

30

Talent Engagement

quality highlights, employee and team recognition and other company

We recognize that purposeful work attracts and retains top talent andtranslates into increased engagement, innovation, effort and productivity.
We strive to create a positive work environment that drives long-term
success by creating a place where employees feel valued and want todevelopments. An important internal stakeholder communications
initiative is our “You Talk, We Listen” process. Cooper Standard leaders
hold these sessions for all levels of the organization to listen and respondto what is on our employees’ minds.

do their best work. Our objective is to foster a culture that celebrates ourThrough regular global webcasts, our GLT shares information about

employees and creates an engaging workplace, built on our Core Values

the Company’s direction, communicates priorities across our global

and Capabilities.

operations and responds to questions from employees during live panel

We constantly work to grow and improve our communication methods
and channels to give our employees the space to have meaningfulconversations about their career development. We send CEO letters,

discussions. They also conduct an annual GLT Awards program, which
recognizes high-performing teams. In 2022, 19 teams and projects were
nominated and 10 were recognized with a GLT award.

shared with employees in their local language, throughout the year
and use our global employee communications platform, CS Connect, toshare business strategies and opportunities, including safety initiatives,

Employee Resource and Networks Groups

H

-

- W

R

- EN

EN

P
Science, Technology, Engineeringand Math (STEM)

Working to maintain an environmentthat promotes and provides resources for
employees of African ancestry

Promoting healthy living and supporting
health-related causes

Promoting STEM-related careers andinspiring the next generation

E - SUP

Cooper Standard Fitness, Athletics,
Sporting Team (CS FAST)IR

Cooper Standard African American
Network (CAAN)

P

O

S

RT

- IN

M

I

O

C

Women Inspire Support Enrich (WISE)
Enriching employee experience andsupporting women’s causes

31

Diversity, Inclusion & Belonging

Workforce Demographics 1

3-3

U.S. workforce by ethnicity

At Cooper Standard, we believe in our Core Value Diversity Makes Us
Stronger, and we are committed to maintaining a culture that supports

White
Other

and promotes Diversity, Inclusion and Belonging (DIB). We value differing
perspectives and understand the importance of creating a global
workforce that reflects a broad range of human differences, leveraging

83%

82%

83%

81%

the uniqueness of every team member and nurturing an inclusive culture
where each employee feels they belong and are valued. By welcoming,celebrating and maintaining a strong focus on diversity, inclusion
and belonging, we aim to attract new talent, identify new business
opportunities and generate innovative solutions that enable us to growand expand our business globally.
Our commitment to DIB is defined and affirmed in our DIB statement“Valuing the Perspectives and Leveraging the Strengths of All

18%
2019

17%
2020

19%

17%
2021

2022

Employees.” We are upholding our commitment by:‫ ظ‬Creating a recruiting culture that attracts a diverse talent pool andhires the right person for the right job;‫ ظ‬Investing in programs to develop and retain a diverse workforce;‫ ظ‬Creating forums for all voices to be heard;‫ ظ‬Auditing for exclusionary norms, processes, policies and inequities;‫ ظ‬Providing opportunities for employees to be aware of theirunconscious biases and learn about and celebrate others’ differences;‫ ظ‬Helping all employees feel physically and psychologically safe; and‫ ظ‬Improving and supporting the communities where we work and live.
Our talent acquisition strategy is an extension of our DIB commitments,
and we take action to improve processes so that we can identify andinvest in increasing our diverse candidate pipeline, eliminate bias in
the hiring and interview process and create a recruiting culture where
everyone is a diversity champion. Our commitment to building a diverse

SUPPORTING PRISONER REHABILITATION
In 2022, Cooper Standard began partnering with a penitentiary in
Sremska Mitrovica, Serbia to provide work opportunities for eligible
prisoners. The goal of the program is to enable the prisoners'
employability after release, contributing to their social reintegration
and reducing the prisoners' chances of reincarceration.
Our program provides participants with experience in a real
work environment, a fair wage and marketable skills to facilitate
employment. In the future, Cooper Standard plans to continue tosponsor 10-15 program participants.

and inclusive workforce is outlined in our DIB policy, signed by our GLT
and lead Board director.

1

Excludes contingent employees

32

The DIB Action Group is responsible for managing Company DIB initiatives and is organized into 4 strategic workstreams. In 2022, each workstream
made significant progress. Highlights of their accomplishments include:

Recruiting / Development

Retention

Policies / Procedures

Communications

DIB training and interview guides
for Hiring Managers

Targeted Cooper Standard University
course offerings for ERG groups

Launched Respectful
Communications Campaign

Expanded Panels with a Purpose and
DIB-related content on CS Connect

We aim to achieve a common perspective towards the significance ofextend this training to our hourly workforce. In 2022, we hosted six “Panels

DIB across our organization, which we can do by building awareness,with a Purpose” for leaders and other colleagues to share their insights on

improving our recruiting culture and establishing a more strategic

a variety of DIB-related topics impacting today’s workers. We publish an

approach to improving overall diversity, inclusion and belonging atarticle series called “Meaningful Conversations” to further explore some of

Cooper Standard. Our DIB Action Group is responsible for managing

these important topics.

DIB initiatives. This group oversees the progress we make towards our
DIB goals and strengthens our DIB programming within strategically
identified workstreams, including Company policies, recruiting, retention
and development, communications and training, and employee resourcegroups. The DIB Action Group has quarterly GLT reporting requirements.
Our Board routinely discusses the impact of social topics, including DIB,
to build their awareness of our diversity initiatives.

When we updated our Purpose, Mission, Values and Capabilities, wewere able to be introspective about who we are, who we want to be andhow we can generate the most impact for our stakeholders. Throughthis process, we affirmed the importance of creating an inclusive culturethat welcomes and celebrates a diverse workforce when attracting andretaining talented individuals from varied backgrounds and experiences.
Studies find that demographically diverse companies are more likely to

We have taken action to establish a strong DIB culture by driving

outperform their more homogeneous peers, which is why developing DIB isawareness and educating our employees, GLT and Board. In 2022, we

critical to meeting our business objectives. Our certified diversity recruiters

focused on increasing GLT engagement with DIB by increasing reporting

implement interviewing and assessment best practices and help buildof DIB progress and establishing GLT-level DIB goals.

diverse candidate slates, and our hiring team is committed to broadening

All salaried employees are required to participate in unconscious bias
training as part of their onboarding and, going forward, we intend to

our network, looking outside standard channels to recruit diverse
candidates and target underrepresented candidates for all open positions.

33

PROVIDING DEVELOPMENT OPPORTUNITIESFOR UNDERREPRESENTED GROUPSIn 2022, we took action to provide new learning opportunities that will promote a culture that better
understands and values the unique differences that exists within our global business, while providing
developmental opportunities for underrepresented groups. The Cooper Standard DIB Action Group partneredwith the Cooper Standard University Leadership College to launch a series of learning and development
opportunities for leaders in two focus areas, women globally and racially underrepresented talent within the
United States.
This program consists of one virtual classroom module Declare Your Brand, and three
self-directed eLearning modules Communicating Effectively to Improve Your
Leadership Brand, Resolving Workplace Conflict and Developing Yourself andOthers. In 2022, we facilitated 10 virtual classroom sessions of Declare Your Brandwith 77 participants.

34

OUR PERFORMANCE
401-1, 405-1
Cooper Standard is a strong advocate for gender equity in the workplace. Our Board is comprised of 30% women and our GLT is comprised of 22% women.
While we acknowledge additional room for improvement, we emphasize expanding female representation in our global workforce. We also focus on
increasing the number of women in salaried positions, especially within leadership.
Internal Fill Rate

Internal Fill Rate

Employee Voluntary Turnover

Total Employee Turnover

manager level

director level & above(including plant managers)

hourly & salaryhourly & salaryWorld-class Benchmark 66%

World-class Benchmark 66%

80.8%

70.3%
58.6%
47.0%

59.3%

55.6%

50.4%

60.0%
Industry Benchmark 17.4%

Industry Benchmark 11.6%

19.2%

2019

2020

2021

2022

Women in the Enterprise

35.9%

36.4%

37.5%

2019

2020

2021

2021

2022

Women in Salaried Workforce

38.4%
28.3%

2019

2020

2022

2019

29.6%

2020

30.6%

2021

30.6%

2022

14.7%

12.7%

2019

2020

19.8%
2021

2022

26.0%

26.0%

2019

2020

34.5%

35.8%

2021

2022

Women in Leadership

Women in Leadershipdirector level & above

vice president & above

24.0%
17.2%

2019

16.4%

16.7%

2020

2021

20.0%

15.9%

2022

2019

2020

22.2%

22.2%

2021

2022

excludes contingent employees

35

WINNING IN THE WORKPL ACE

WORKPLACEHEALTH & SAFETYAt Cooper Standard, we are committed to Safety First as a part of our Total Safety Culture. It is our responsibility to deliver environmentally responsible
materials and products while minimizing injuries across our facilities. We make it a priority to provide all employees with safety training and awareness,
personal protective equipment and safe working conditions to achieve zero workplace injuries. We will adapt and evolve our approach as needed to ensurea physically and psychologically safe workplace for our employees.

BUILDING AWORLD-CLASS SAFETY CULTURE
Key:

2021

2022

By 2023, each facility will have improved

We will achieve 30% of facilities certified to ISO

their safety balanced scorecard score by 15%

45001 by year-end 2021, and 100% by 2023.

from a 2019 baseline.
30%

15%

37%

36

0.33

25

12

total incident rate per 200,000

plants achievedconsecutive years

hours worked; well below ourzero incidents

without any fatal accidents

0.57 world-class benchmark

OUR PRIORITIESOUR APPROACH

3-3

3-3

Our Total Safety Culture is at the core of everything we do and it

Our Total Safety Culture thrives at all levels of the Company, and we keep

encourages all employees to take ownership in mitigating healthopen lines of communication with our leadership and our workforce

and safety risks. We take proactive steps to ensure a safe working

to maintain transparency. Cooper Standard’s global manufacturing

environment, measuring progress towards our safety performance goals

organization, led by the Senior Vice President and Managing Director

and enhancing the maturity of our programs. With a focus on prevention,- Global Automotive, oversees our overall safety performance. Our Vice

we look for ways to address systemic failures before they happen, prevent

President of Quality, Supplier Development and Global Health, Safetyrecurrences and drive change. After exceeding our goal to certify 30%

and Environmental is responsible for leading and evolving our Totalof facilities to ISO 45001 by 2021, we revisited the purpose for aiming to

Safety Culture. At the local level, the Regional Leaders of Health, Safety

certify 100% our facilities. Despite challenges and constraints in 2022, weand Environmental (HSE), country HSE managers, HSE plant leaders

met all our operational safety goals without certifying additional sites.

and staff manage safety responsibilities. We report safety updates to theMoving forward, we will maintain a state of readiness to address any

Global Leadership Team monthly and safety trends to the Board monthly.

customer requests related to certifying facilities to ISO 45001 and we will

The support and engagement of our leadership strengthens the overall

maintain our focus on managing the safety of our employees through our

success of Cooper Standard’s Total Safety Culture.

Total Safety Culture.

37

Each week, we engage in multiple meetings with various stakeholders
throughout the Company. We meet weekly for an overall businessupdate to discuss any issues that we have identified. Our Health &Safety team presents at our monthly results meeting, where we discuss
any significant ongoing projects and any newly developed or released
procedures. We present any new key performance indicators and futureplans at our monthly World-class Operations meeting.

Proactive Safety
Cooper Standard implements various proactive safety measures acrossthe Company. In 2022, we implemented the Fast Response Process (FRP)
for health, safety and environmental. The purpose of this procedure
is to define the requirements for establishing the FRP into everyday
plant management to integrate, demonstrate, promote and define a
program to reduce HSE-related significant events in the plant. The HSE

The Safety Balanced Scorecard (SBS) is the primary health and safety

FRP meeting is a cross-functional meeting owned by operations whose

management system at Cooper Standard that matures and advances

responsibility is to review significant HSE events including recordable

our safety practices and risk management. In 2021, we developed a safetyincidents, near misses or first aid events daily. It is a brief communication-

roadmap that evaluated SBS elements and created a calibration method

focused “short sharp” meeting typically held on the shop floor, whereto standardize scoring. In 2022, we took steps to further develop the SBS toeach event is documented & reviewed to provide structure for the report

create a more forward-looking perspective, allowing for a more proactive

out and ensure corrective actions have been identified, assigned andapproach to safety management. Each plant has targets for its SBS and eachtracked through completion.

year we update those targets based on the previous year’s performance.

To promote a safety culture of open communication, Cooper Standard

The SBS system rates each facility’s performance across six elements:

encourages all employees to take initiative and report health and safety‫ ظ‬Safety culture maturity model survey;

concerns. Employees can report work-related injuries, illnesses and first‫ ظ‬Safety engagement;‫ ظ‬Job hazard and risk assessment;‫ ظ‬Critical safety program evaluation;‫ ظ‬Incident statistics (total incident rate and lost day severity rate); and‫ ظ‬Validated critical safety event investigation.
All six SBS elements are designed to help our facilities achieve worldclass performance, specifically focusing on leading rather than lagging
indicators. Leading indicators help us proactively prevent safety issues as
opposed to simply measuring incidents after they happen.

Employees at our Guaymas West, Mexico location
gather for a Fast Response Process meeting

aid cases. All critical safety events, including near-misses, first aid andother recordable safety events, must be assessed and validated.

38

Training & Plant Culture
403-5
Participation is the backbone of our Total Safety Culture. At CooperStandard, it is the responsibility of our leaders and employees to createa safe, healthy and respectful work environment. We achieve our targets
because leaders and employees at every plant location understand that

GLOBALSAFETY MONTH

Safety First is a Core Value.
Cooper Standard provides most health and safety training throughBuilding a Talented Organization (BTO), a global standardized training

In September, we held a Safety Month across all our global locations to:process for direct labor operators. BTO offers a range of health and safety‫ ظ‬Increase safety engagement;

modules from ergonomics to safely operating machinery. In 2022, we‫ ظ‬Improve colleague collaboration;

began rolling out an enhanced health, safety and environmental module‫ ظ‬Focus on accident prevention; andto help reduce safety incidents and further ensure our plant trainers can‫ ظ‬Enhance health & safety performance.

identify hazards before problems occur. Additionally, our Plant Manager
Institute sessions, part of the Manufacturing College, include a four-hour

Each year, our Global Safety month helps make us stronger andTotal Safety Culture curriculum.

allows us to talk to people throughout our organization about how

Plant Managers track and manage recordable incidents, first aid
occurrences and near-miss health, safety and environmental issues
through Cooper Standard’s FRP. Each facility displays their health andsafety incidents on a digital screen to personnel and plant managers
review these boards every day with their teams. Plant managers also
highlight a weekly safety topic and use materials from our enterprise
portal to implement customized training sessions at their respective
locations. Overall, the FRP is used to communicate significant HSE
issues to management, assign ownership to corrective actions and trackprogress through completion. To ensure that all leadership employees
stay informed, the health and safety management system can send
global alerts if a significant HSE event becomes recordable.
At the end of every June, all locations participate in a safety culture
maturity model survey to improve our health and safety performanceyear after year. After analyzing the results of the surveys, we can identify
the areas in each plant that require the most improvements.

we can enhance our safety maturity. In 2022, our Global Safetymonth focus was on hand safety. To increase awareness about
hand safety best practices and prevention measures, we increased
communications around safety and held events and training
programs. We experienced a 10% reduction in hand safety events(first aid, near miss -potential, observations, recordables) after
Safety month in the last four months of 2022, suggesting a strong
correlation between safety engagement and a safe workplace.

39

OUR PERFORMANCE
403-2
We improved our Total Incident Rate (TIR) and exceeded the world-classFacilities ISO 45001 Certified1

Zero Incident Rate
# of locations

benchmark for the sixth consecutive year. For the full year 2022, our TIR
was 0.34 per 200,000 hours worked, compared to 0.40 in 2021 and 0.32 in
2020, all well below our world-class benchmark of 0.57. In addition, 25 ofour plants achieved zero incidents.

29‫ ظ‬Three of these plants achieved zero incidents for two consecutive years.

43%‫ ظ‬Seven of these plants achieved zero incidents for three consecutive years.
‫ ظ‬Four of these plants achieved zero incidents for four consecutive years.
‫ ظ‬Two of these plants achieved zero incidents for five consecutive years.

23

37%

25

19
24.7%

24.7%

2019

2020

‫ ظ‬One plant achieved zero incidents for eight consecutive years.
‫ ظ‬For the twelfth consecutive year, Cooper Standard did not experienceany fatal accidents.

Total Days Away

2021

2022

Total Incident Rate

Total Fatalities

2019

2020

2021

2022

Lost Time Incident Rate

restricted or transferredWorld-class Benchmark 0.57

0.25

0.25
1,318

0.50

1,221

0.40
0.33

0.32

0.25
-

-

2019

2020

2021

2022

0

0

0

0

2019

2020

2021

2022

0.21
0.14

0.11
2019

2020

2021

2022

1

2019

2020

2021

2022

Data includes those plants certif ied to OHSAS 18001

40

WINNING IN THE WORKPL ACE

COMMUNITY
INVOLVEMENT
Cooper Standard is committed to being a good community partner. We strive to Create Sustainable Solutions Together, which means partnering withstakeholders in our community to live out our Core Values and exceed expectations. We strongly believe that supporting communities benefits our
employees, attracts new talent and improves our reputation as a leading global manufacturer. We promote environmentally responsible practices
and provide philanthropic support to our surrounding communities to create a lasting positive impact and inspire others to contribute to our efforts.
Throughout the year, our employees engage in many community involvement initiatives and find new ways to give back to the communities where
they work and live. Through ongoing employee engagement and the support of the Cooper Standard Foundation, we remain focused on ourcommunity involvement efforts and dedicate resources to strengthen our philanthropic contributions.

GIVING BACK TOCOMMUNITIES WHERE WE WORK & LIVE
Key:

2021

2022

Annually engage employees and theirfamilies equivalent to 50% of our workforce

38.6%

Altacomulco, Mexico employees painted classrooms at a
local Kindergarten benefiting more than 100 children.

41

OUR CULTURE OF GIVING BACK
Cooper Standard’s community involvement fosters employee engagement that sets us apart. These engagements have great impact on our local
communities and on our employees’ relationships with each other and with the Company. The Cooper Standard Foundation’s support and promotionof grassroots efforts is a large component of the Company’s philanthropic culture and connects employees with our communities around the world.

OUR APPROACH
3-3, 413-1
Since its establishment, the Cooper Standard Foundation’s Mission has
been to strengthen the communities where Cooper Standard employees
live and work through the support of children’s charities, education,
health, wellness and community revitalization.
The Cooper Standard Foundation focuses on four areas:‫ ظ‬Direct donations and grants to charitable organizations;‫ ظ‬Matching contributions for employee engagement activities;‫ ظ‬Scholarships for employees’ children based on academic
achievement and community involvement; andCooper Standard Qingpu, China employees donated much needed
supplies to support a local community disability center.

OUR PRIORITIES‫ ظ‬Global crisis funding.
Our Foundation Board of Trustees and our Philanthropic Committee are
all responsible for overseeing the activities of the Foundation. The CooperStandard Foundation is a 501(c)(3) organization, governed by U.S. tax laws.

The Cooper Standard Foundation provides opportunities for employees

Annual Board meetings are held each December where confirmation ofand their loved ones to give back to the communities where they work

the Board of Trustees and Philanthropic Committee are approved. The

and live. Employees who participate in these experiences characterize

year-end meeting also includes a year-in-review presentation, budgetary

them as incredibly valuable to their own feelings of engagement andapprovals and other Foundation updates and discussions. In addition

to the community. In developing a strategic target for our community

to the annual meeting, we have quarterly Philanthropic Committee

involvement, we focused on increasing rates of employee participation. In

meetings to review and approve philanthropic requests and monetary2022, our community engagement was renewed as we emerge from thebudgets. If further approval is necessary, we present requests to thechallenges once presented by the Covid-19 pandemic.

Board of Trustees for final approval.

42

STEM and Manufacturing Education
As a global manufacturing leader, Cooper Standard is passionate about inspiring and cultivating the next generation of the manufacturing workforce,
especially through science, technology, engineering and math (STEM)-related careers.
Our STEM Employee Resource Group works to develop interest in manufacturing and STEM careers. The Resource Group consists of Cooper Standard
volunteers, called “STEM Accelerators,” who strive to inspire student interest in STEM careers through various community initiatives, including:National Manufacturing Day – Each year, Cooper Standard facilities
invite students to learn about modern manufacturing. While Covid-19
restrictions limited some in-person visits in 2022, activities continued at
20 locations, both virtual and in-person, as safety protocols allowed.
Other Regional Events – Our STEM Resource Group hosted events for
local students and employees’ children in our North America and Asia
Pacific regions.
Commitment to Our Veterans
Cooper Standard is devoted to honoring and supporting military heroes
through initiatives focused on helping veterans integrate back to civilian
life through education and ultimately employment.
In 2022, a group of employee veterans once again held a skeet shooting
fundraiser for Michigan’s Disabled American Veterans (DAV), raising
approximately $75,000 over the last two years. Michigan’s DAV is
dedicated to empowering veterans to lead high-quality lives with respect

FIRST ROBOTICS(For Inspiration and Recognition of Science and Technology)

and dignity. These funds will assist the DAV to fund mobile units that

Cooper Standard funds numerous FIRST Robotics Sponsorships

travel to rural communities and assist veterans and their families by

and Programs across Metro Detroit school districts. Cooper

providing educational training regarding benefits. In addition to theseStandard STEM Accelerators also help coach and mentor the

trainings, members of the DAV assist veterans by helping them fill out the

FIRST Lego League program at the S.A.Y. Detroit Play Center.

necessary paperwork to apply for funds.

Cooper Standard volunteers wrapped up the 2022 fall season of

In 2022, the same group of employee veterans participated in a hockey
tournament that raised over $16,000 and secured a 50% Cooper Standard
Foundation match of over $8,000. Proceeds from the hockey tournament
went to the Motor City Veterans Hockey Association, an organization
comprised of veterans and family members, whose goal is to provide
veterans and their families with recreational therapy through hockey.

the robotics program at S.A.Y. Detroit Play Center. Our volunteers
mentored kids in engineering and robotics and assisted
students who qualified for a regional competition at the Detroit
Science Center. This team of students was awarded the secondplace trophy with the second-highest score in the competition.

43

Humanitarian Aid – Due to the conflict in Ukraine, employees from

Health & Wellness

Battapalgia, Italy, DzierżoniÓw and Bielsko-Biała, Poland, Vitré andOur employees engage in health and wellness activities to make adifference in the lives of our neighbors in communities across the globe.
Some examples of the numerous activities in which our employees

Lillebonne, France, Stratford, Canada, and Mannheim, Lindau andSchelklingen, Germany joined forces to lend a helping hand. Employees
collected funds, medicine, health products, laptop computers, clothes

participated include:and school supplies for children. By teaming up with local firefighters,

New Rotary Hospice – Employees from our Stratford, Ontario facilities

employees collected and sent protective equipment to Ukraine including

laid out a five-year plan to donate $75,000 to open the New Rotary

firefighting helmets, firefighting pants, gloves, hose bridges, stretchers,

hospice. These employees achieved their five-year goal ahead ofbreaking tools (axes and hatchets), flame protection hoods, jet pipes,

schedule, in just two and a half years, in October 2022.

distributors, stopcocks, support elbows and collecting piece. Our logistics
teams also supported this effort by organizing shipments. In addition
to these efforts, the Cooper Standard Foundation sent a monetary crisis
donation to provide ongoing support.

Coventry,
LondonLeonard & Northville,
MichiganCommunity

Partners
China(various locations)

Aguascalientes,
MexicoVarginha,BrazilFood Insecurity Initiatives – Many employees around the world share the concern for those suffering from food insecurity. To act against food insecurity,
our Leonard, Michigan facility donated over 300 pounds of food to a local food bank. Our Northville, Michigan employees organize team building projects
that involve packing food boxes at local food banks. Coventry, London employees collected and distributed food, monetary donations and toys to charities
in their local community to help contribute to a pleasant holiday season. Our colleagues at the Aguascalientes, Mexico plant collected and distributed
food and cleaning supplies to a home for elderly people. In China, many events take place to relieve the elderly, children and small villages in poverty andto help supply them with basic needs. Our Varginha, Brazil team works to distribute food through four various organizations that include cancer centers
for those in need, homeless shelters, elderly homes and an organization that distributes food to low-income neighborhoods.

44

Community Revitalization
Our community revitalization efforts directly connect to the CooperStandard Foundation’s Mission to improve our communities.

Cooper Standard also participates in S.A.Y. Detroit’s Working Homes
Working Families program. This program’s purpose is to revitalize thecommunity and neighborhood by refurbishing abandoned houses in
Detroit for working families in need. Over the past four years, Cooper

Cooper Standard has been a proud partner with S.A.Y. Detroit forStandard participated in eight events, including two in 2022 in which they

over 14 years. S.A.Y Detroit is an organization dedicated to revitalizing

once again reintegrated the Perchman Park and Parker Village Farms

communities and providing support to the most vulnerable citizens. We

community garden. Over the years, the employees have worked to rebuild

have helped fund many of their programs, including the S.A.Y Detroit

homes for deserving families, as well as other S.A.Y. projects focused on

Clinic and the S.A.Y Play Center. The S.A.Y. Detroit Clinic provides freerevitalizing the surrounding neighborhood parks, including the Higgins,service to homeless children, mothers and veterans. The S.A.Y. Play Center

Balduck and Morningside parks.

is where our STEM Employee Resource Group works to inspire the next
generation to pursue careers in STEM fields.

Cooper Standard is proud to partner with S.A.Y. Detroit and the Working
Homes Working Families program. Looking ahead, the Company and our
employees will remain dedicated to strengthening the communities where
employees work and live through the passionate support of children’scharities, education, health, wellness and community revitalization.

Atibaia Community Garden: need blurb

Southeast Michigan and Atibaia, Brazil: employees spent an afternoon of gardening at their local community gardensthat help residents who receive vegetables and fruits from the harvest throughout the year.

Mannheim, Germany: to assist in theongoing conflict in Ukraine, employees
donated valuable personal protective gear,
fire retardant equipment, tools and first aid
supplies to the local fire department.

45

ENHANCING OUR COMMUNITIESAROUND THE WORLD

Cooper Standard Atlacomulco, Mexico joined forces with theirfamilies, friends and neighbors to plant trees in Tecoac, a mountainknown as a rich forest containing many florae and fauna. In April
2021, a forest fire devastated the region and destroyed wildlife andvegetation. More than 250 people contributed to this effort by hiking
up the mountain to identify areas most affected by the forest fire,so that they could identify where trees should be planted on themountain. This volunteer effort contributed to the restoration of thiscommunity and will lead to a lasting impact for generations to come.

OUR PERFORMANCE
Charities Supported

Employee Volunteer Hours

Community Engagements

Annual Contributions*since 2013

(millions)

140+
120+

146+

125+

10,000
18

18

18

$1.50
8,870

7,059
7,000

$0.70

$0.75

2020

2021

$0.60

2,000
2019

2020

2021

2022

-

-

-

2019

2020

2021

2022

2019

2020

2021

2022

2019

2022

*approximately half from employee engagement

ENHANCINGPRODUCT VALUE

Cooper Standard is dedicated to delivering exceptional products andservices, embracing innovative ideas and meeting customer expectations.
We are evolving to Create Sustainable Solutions Together by fully
integrating product safety throughout our framework and processes, andenhancing our product quality, value and customer relations. We maintainour reputation for manufacturing excellence, engineering expertise, safety
performance and reliable delivery of high-quality products by holding
ourselves to high standards and staying competitive in global markets. As atrusted supplier, we create open lines of communication to understand andIn This Section

Important Links

Innovation, Materials

Culture of Innovation& Product Lifecycle

Fortrex™ Materials Platform

Product Quality & Safety

SPE Automotive Award

Customer Trust & Satisfaction

PlastiCool® Portfolio
Connector Portfolio

respond to our customers’ needs. Our consistent performance and unique

CS Open Innovation

expertise set us apart as a supplier of choice. We respond to stakeholder

FlushSeal™

concerns around climate change to develop innovative products that
address global sustainability challenges and contribute to a low carbon
economy. In this section, we share our commitments to innovative solutions,environmental stewardship, quality products, anticipating the needs of our
future stakeholders and strengthening our strategic partnerships.

Sealing Systems
Fluid Handling Systems
Automotive Industry Action Group

47

ENHANCING PRODUCT VALUEINNOVATION, MATERIALS& PRODUCT LIFECYCLE
Cooper Standard strives to Be the First Choice of the Stakeholders We Serve by continuously evolving, embracing innovative ideas and meeting or
exceeding stakeholder expectations. We are dedicated to finding solutions to make our products more sustainable and contributing to the fightagainst climate change. We aim to implement sustainable practices through each stage of our product lifecycle, which requires balancing thetechnological and economic limitations to the sustainability of relevant materials for our products. In 2022, we made the intentional effort to improvevisibility of our product portfolio both internally and externally, furthering our culture of innovation and transparency. With our i3 stage gate innovation
process (Imagine, Initiate and Innovate), our new 4P (Product, Process, Programming and Partnership) and 4C (Connect, Convey, Communicate andControl) product strategies, and our Product Lifecycle Management system, we differentiate ourselves from our competitors. Our intent is to decrease
the carbon footprint of our products by increasing their recyclability, reducing their weight, and reducing energy and materials used during the
manufacturing process. We also help our customers optimize their systems to positively impact the economy of fuel-powered and electric vehicles.
Enhancing product performance and aesthetics allows us to be more competitive in the global markets we serve.

EMBED SUSTAINABILITY
THROUGHOUT OUR DAILY BUSINESS ACTIVITIES
Key:

2021

2022

Commit to linking 75% of our new

Implement our innovative materials andinnovations to improved sustainability

product solutions on half of all battery

outcomes in the production, use or end-of-electric vehicles on the road (including

life phases.

hybrid vehicles) by 2023.

81%

45%

48

INNOVATING FOR THE FUTURE
Cooper Standard develops system level solutions for the future of the automotive industry
by pushing the boundaries of innovation. We are focused on developing more sustainable,higher performing and aesthetically pleasing products that help reduce use of materials,
energy and chemicals, while increasing vehicle range.
As we look to the future, Cooper Standard is working to address new and evolving demands
with advanced materials and products that will be available in the coming years.

OUR APPROACH

Chaired by our Senior Vice President, Chief Technology Officer, our Global

3-3, 306-2

Technology Council (GTC) oversees our innovation process. Our ViceAt Cooper Standard, we take action to reduce the environmental impactof our products. We constantly look for new opportunities to improve thedesign of our products and manufacturing processes with our robust i3
innovation process, our 4P and 4C product strategies, and our Product
Lifecycle Management system. We are committed to improved circularity
from “cradle to grave” by increasing the recyclability, repairability,
reusability and durability of our products. From sourcing throughend-of-life, our product engineering team tracks products using our

President and Chief Commercial Officer and our Senior Vice President
and Managing Director, Global Automotive, are also members of the GTC.
The GTC is a cross-functional governance body that oversees researchand development in all business and product groups, including materials
science, product design, manufacturing process technology, analytics
and artificial intelligence. Research and development functions include
innovations within our Global Automotive and Applied Materials Science(AMS) businesses.

product lifecycle management database and Cooper Standard’s launch

The AMS business serves diverse industries with our materials sciencemanagement system. These tools serve as our primary repository ofinnovations, such as our dynamic Fortrex™ materials platform. By

information, deliverables and data when innovating and manufacturing

leveraging Cooper Standard’s manufacturing and materials science

more sustainable products. Our technology roadmap is focusedexpertise, the team is commercializing custom-blended grades ofon corporate and environmental sustainability, including products

materials for applications outside of the automotive industry. Our

supporting electrification, increased usage of thermoplastics andFortrex™ technology is used in the footwear industry and offers

reduced global warming potential.

outstanding performance with a dramatically reduced carbon footprint
when compared to traditional materials.

49

Imagine, Initiate & Innovate
At Cooper Standard, our CS Open Innovation initiative provides a
structure for external stakeholders, including startup companies,
universities and suppliers, to collaborate with Cooper Standard. ThroughCS Open Innovation, we continually screen promising technologies
from a variety of sources and decide on strategic applications. From
this initiative, we have made significant progress in developing artificial
intelligence for better control of manufacturing processes, which
ultimately reduces waste and energy consumption.
Cooper Standard is also working with a partner to collaborate on thepossibility of making our Fortrex™ technology out of upcycled consumer
waste. Those efforts are ongoing. We believe these activities can bebeneficial to all customers, both automotive and non-automotive.
FLUID HANDLING INNOVATIONS GARNERING RECOGNITION

Our GTC screens and selects i3 ideas for development using a defined& CREATING OPPORTUNITIES

index score that considers cost-saving factors and environmental issues,

A Cooper Standard thermoplastic battery electric vehicle (BEV)use. We also evaluate ideas for sustainability by assessing enhanced use

thermal management solution earned an SPE Automotive
award in the materials category. The solution involves twodevelopments that provide a lightweight, thermoplastic solution

such as recyclability, inclusion of hazardous materials and total materialsof payload, reduced emissions and improved lifecycle. On average, theteam reviewed roughly 12 submissions each quarter in 2022.

for BEV thermal management systems.

The Company’s i3 and Open Innovation processes serve as rich sources for

Our new PlastiCool® engineered tubing technology wasproducts with broader customer adoption. We received 50 i3 submissions

developed specifically for the operating temperature and pressure
environments required for glycol thermal management systems
in BEVs. It also aids in optimizing flow and provides a weight
reduction of 60% compared to more traditional EPDM tubing
technology, helping to improve vehicle efficiency. Combined with
our latest Ergo-Lock + quick connect technology, the system®

also improves the flexibility and efficiency of the OEM assembly
process, a significant value add for our customers.
While we are pleased to be recognized by the Society of Plastics
Engineers, we are even more pleased with the new business ourcustomers are awarding us — largely driven by our consistentfocus on value-added innovations.

innovative ideas. In 2022, we increased project efficiency with a focus on
in 2022, and we have approximately 44 projects in various stages ofcompletion at this time. Innovations within our core automotive productlines, include our Fortrex® materials platform, FlushSeal™ movableglass sealing system, Hidden Outer Waist Belt, Glass-like Appliqué,
MagAlloy® next-generation metal coating process, Gen III Posi-Lock®
quick connector, Easy-Lock® push-to-lock quick connector, Ergo-Lock®
quick connector, Eco-Snap™ quick connector, PET brake hose and our
PlastiCool® portfolio of engineered lightweight multilayer tube for glycol
applications. For more information on our innovative sealing and fluid
handling products, please refer to our website.

50

At Cooper Standard, we are continuing to identify opportunities toincrease our sustainable product offerings. Moving forward, we will
work to develop a target of post-consumer recycled material andbio-renewable materials used in our products. We are introducing

INSPIRING EMPLOYEES &PROMOTING INNOVATION

innovations to create new opportunities for sustainable and renewableproducts that have been made from recycled materials, generated fromrenewable materials, or generated from plant matter.

At Cooper Standard, we embrace innovative ideas and believe

Formulinkthat Collaboration Drives Success. In 2022, our Sealing ProductWe use digital tools to support optimization and provide innovative

Headquarters in Northville, Michigan to educate our employees

solutions that allow us to secure and deploy resources in the most efficientand effective manner. Our Formulink solution enables us to accelerate
development of advanced materials compounds and share theseformulations globally. This tool analyzes our global database of compoundrecipes and associated physical properties, and suggests improved recipesthat maximize performance, while minimizing costs and complexity. In
addition, we use this tool to manage our global catalog of materials and to
identify less environmentally sustainable materials that can be targeted for
reduction. We utilize Formulink throughout our operations worldwide, whichallows us to drive global consistency, consolidate formulas and ultimately

Development team hosted an Innovation Showcase at ourabout the latest in sealing systems.
Our Director of Product Strategy for Sealing Systems presented tomore than 70 employees and explained the impact of these solutions
on our overall success as a Company. He shared an update on new
business wins/opportunities, including the focus ahead on ourframeless door sealing strategy. The team learned about the types ofnewer materials that we use and benefits to cost, weight reductions,weatherability and sustainability. Our Senior Director of Corporate
Communications also joined the discussion to tell the team about

improve both long- and short-term product performance.

our latest partnership with product teams to better market our

Design by Analysis

our latest videos and social posts have led to new business wins.

Our development team drives innovation using advanced tools for computer

latest sealing solutions and even looked at future prototypes.

aided engineering and simulation analysis. We replace physical tests withdigital analysis and virtual validation wherever possible, leading to the
production of fewer prototypes and shortening the development cycle. We
invest in these digital technologies and expanding the range of validation
work we can perform without producing physical samples. Design bycapabilities. She explained the power of product marketing and how
Following their presentations, employees gathered to explore ourThis event was inspired by a similar event led by our Fluid Handling
Product Development team, where more than 100 of our experts
gathered at our Global Technology Center in Livonia, Michigan
for a day of brainstorming, networking and sharing innovation

analysis and virtual validation play an important role in our development

advancements in fluid handling product design and sustainability.

process as well as our manufacturing process as we increasingly move

These events have been such a success, that similar events have been

toward the simulations of complex systems. These tools create value,
reduce our development cycle time by 15%, and increase our customer
responsiveness and overall design quality.

held in Vitré, France and Lindau, Germany. There are plans for similarinnovation events in 2023 at other facilities around the world.

51

Product Lifecycle Assessments

Knowledge-based Engineering (KBE)
Using KBE, we create a database of captured knowledge including

306-2

information, drawings and standards to increase consistency and quality

Cooper Standard is committed to designing and innovating products

in our product designs. KBE dramatically increases efficiency for routinewith improved circularity and we conduct product lifecycle assessments

tasks and allows for greater standardization with proven high-quality

on an as needed basis. We focus on meeting the expectations of ourdesigns. With the help of KBE, we were able to reduce the number ofstakeholders by conducting assessments in cases where we receive astandard components we use in our bills of materials by more than 50%.

direct request from a customer or where we feel our technologies are truly
revolutionary to the industry like our Fortrex™ technology. While few of

A.I.-enabled Manufacturing Controls

our customers currently require product lifecycle assessments from their

Cooper Standard integrates artificial intelligence (A.I.) throughout
our operations. Our A.I. startup company, Liveline Technologies, uses

suppliers, we anticipate this future customer need and are working on
creative ways to address it.

A.I. to design advanced process controls, which are then deployed to

We are identifying innovative ways to expand our product portfolio to

manufacturing plants. These A.I.-based controllers can monitor extrusion

include more recycled post-consumer product, bio-based and plant-

lines and adjust machine parameters in real-time, resulting in significant

derived materials. As the industry transitions to electric vehicles, thequality improvement, less scrap, reduced consumption of raw materials

importance of these materials will increase. One way we create innovativeand less wasted energy, thereby reducing our environmental footprint.

solutions for electric vehicles is by switching from traditional EPDM rubbermaterials to plastic in both our sealing and fluid handling solutions. This
creates vehicle infrastructure with less weight, which is a crucial key toextending the battery life in electric vehicles.

50

44

15%

50%

i3 submissions

current innovation

reduction in development

reduction in number ofin 2022

projects in various stages

cycle time by utilizing

standard components usedof completion

digital tools

in our bills of materials

52

Shift to Electric Vehicles
The accelerating shift to electric vehicles (EVs) is creating significant
opportunities for innovation for our fluid handling and sealing systems
product lines, and we are positioning ourselves as a leader in this space.
Battery electric vehicles accounted for 80% of our total net new businessin 2022. At Cooper Standard, we are taking proactive steps to transition
our portfolio to meet the needs of electrification in a sustainable way,while driving value and maintaining profitability. OEMs that no longer
need cooling systems for gasoline engines are turning to their suppliers
for cooling — and in some cases, heating — of electronics and batteries.

Cooper Standard is addressing new and evolving demands withadvanced materials that are lightweight, more sustainable and enablesignificant improvements in safety for the growing EV market. These
products include our:‫ ظ‬Fortrex® materials platform which provides 30% weight reduction(versus traditional EPDM) and 10% weight reduction (versus TPV) witha reduced carbon footprint;‫ ظ‬PlastiCool® portfolio of engineered multi-layer tube which provides
excellent chemical resistance and up to a 60% weight reduction
versus traditional EPDM hoses; andElectric vehicles demand lighter, more durable and more sustainable‫ ظ‬Quick connector portfolio which provides superior performance andmaterials, so we are anticipating an industry transition from rubber toenables significant improvements in ergonomics, safety, verification

plastic systems. Our strong and growing product portfolio of lightweight

options and more.

plastic components is specifically designed to meet the EV challenge. With
our decades of experience, we are well-positioned to meet the needs ofan electrified future. Our sealing solutions, like our MicroDense portfolio
help reduce weight and overall material usage, allowing for increases in EV
range while decreasing overall carbon footprint. In 2021, we set a goal of
30% transition to MicroDense EPDM by 2024, and we are on track to reach
31% by the end of 2023.

53

Focused Strategies for an Innovative Future

OUR PERFORMANCE

Our 4P Sealing Product Strategy – Cooper Standard is leading the

In 2022, we faced significant ongoing supply chain disruptions. To limit

global automotive sealing industry as a trusted solution provider that

production interruptions, we identified alternative materials which met

is recognized for excellent launches and technical expertise. We are

our customers’ technical specifications. Our focus on solving technicalcommitted to the needs of our customers, especially EV manufacturers,material shortages and discontinuations – and reputation for strong

in areas such as appearance differentiation, lightweighting andquality management – meant our customers knew they could rely on us tosustainability. Our 4P Sealing Strategy has allowed Cooper Standard to

keep their production going. We utilized our innovative approach and the

become the benchmark for sealing with a focus on electric vehicles andlatest technologies to make progress towards addressing the needs of an

through our focus on product, process, programming and partnership,

evolving market. We advanced circularity in our operations from sourcing

we are committed to offering the best solutions to customers.

through end-of-life, which increased the efficiency of our processes

Our 4C Fluid Handling Product Strategy – Our 4C Strategy positions
Cooper Standard as a fluid handling expert by driving architecture
optimization via smart innovation. Our fluid handling products help
connect, convey, communicate and control throughout fluid systems
for superior performance across diverse powertrains. We leverage ourinnovation expertise and vertically integrated manufacturing processes
with strong global standardization to support customers.

Innovation Patents

Research & Development Spend(% of revenue)

while maintaining product performance and durability. In 2022, we faced
significant supply chain disruptions. To limit production interruptions forour valued customers, we identified alternative materials which met ourcustomers’ technical specifications. Our focus on solving technical material
shortages and discontinuations – and reputation for strong quality
management – meant our customers knew they could rely on us to findsolutions to keep their production going.”

Average Innovation
Idea Submissions

Total Major Innovations
Introduced to Market

each quarter

23

30

23

4.3%

21
3.7%

25

3.9%

16

22
3.2%

12

11
12

8

2019

2020

2021

2022

2019

2020

2021

2022

2019

2020

2021

2022

7

2019

2020

2021

2022

54

ENHANCING PRODUCT VALUEPRODUCT QUALITY& SAFETY
We uphold our reputation as a trusted supplier to our customers by delivering consistent, world-class quality in everything we do. In 2022, we stayedcommitted to delivering high quality performance and solutions to our customers which enabled us to minimize disruptions, issues and interruptions. As
a result, we were able to solidify our customers’ confidence in Cooper Standard as a partner of choice. Our Core Value of Safety First allows us to focus on
creating and utilizing materials, products, processes and procedures that support our safety and environmental responsibility commitments. In 2022, ongoing volatility in the market presented an environment of new risks related to product quality and safety. We demonstrated our ability to deliver value,
improved quality and sustainable solutions to our customers, while maintaining transparency and constructive conversations despite facing various
challenges. Short notice changes in customer production schedules and staffing challenges were successfully mitigated through execution of the strong
quality and product safety systems which were previously established. Despite this year of volatility, we persevered with the highest quality ranking andperformance that we have ever achieved.
DRIVING PROACTIVE EFFORTS TO HELP

DELIVER WORLD-CLASSPRODUCT QUALITY & SAFETY
Key:

2021

2022

Reduce the percentage of potential safety-

Decrease our quality incidents per billion

critical issues reaching customers by 50%

by 35%.

by 2023.

44%

49%

55

ENSURING A SAFE WORKPLACE WITH A FOCUS
ON ENVIRONMENTALLY RESPONSIBLE MATERIALS,
PRODUCTS & PROCEDURES

We strive to eliminate product safety failures in our business and we willreport on our progress annually to hold ourselves accountable to our
Commitment to Excellence.
We developed a set of external goals regarding our critical safety issues
and quality incidents to allow us to be proactive in our improvement
OUR PRIORITIES

approach. In 2022, we saw an 18.4% reduction from 2021 in our incidents

3-3

per billion and we are on track to hit our goal of 35% reduction by

Pursuant to our Safety First Core Value at Cooper Standard, we dedicate
ourselves to providing safe products for our customers. Product safety is
fully integrated into our framework and processes. Our Global Product
Safety Committee (GPSC) is a cross-functional team composed of all
the regional Product Safety Leads as well as representatives from global
engineering, manufacturing, finance and legal teams. Product Quality
and Safety is represented by a topic owner on the Global Sustainability
Council (GSC) and Product Safety performance and progress is reviewed
regularly in GPSC meetings every other month and in GSC meetings
quarterly. Cooper Standard management teams work together to fix
internal and external product safety and quality issues, involving ourcross-functional teams to ensure our responses meet all requirements set
by the National Highway Traffic and Safety Administration.
Throughout 2022, we focused on sharing best practices and lessons
learned to prevent potential product safety issues, then integrating
those insights into our product designs and manufacturing processes.
By analyzing where clusters of issues have occurred, we are able toconcentrate our efforts on resolving our biggest problem areas first.

2023. We also improved performance across all our key quality metrics,
including our percentage of green customer scorecards.
OUR APPROACH
3-3, 416-1
As a part of Cooper Standard’s Product Safety Process, we embed all
product safety standards and regulations into our product design,
manufacturing processes, quality assurance and supplied parts. This
process ensures that our response to real and potential product safetyissues is consistent throughout the Company, follows best practices
and enables these best practices to be shared. We also identify ways toembed sustainability and ESG considerations throughout all aspectsof our business. In 2022, we implemented a sustainability sign-off on
all capital spend requests. This step in the capital expenditure approval
process requires that a member of the GSC review the request to ensurethat Company ESG interests are considered before moving forward withthe spend activity. At every step in our process, we perform at our highest
standard to meet, and when possible, exceed our customers’ expectations.

56

Quality
Cooper Standard’s Global Quality Council oversees three product quality
charters that track product quality actions and progress. Each charter
addresses product safety issues related to end form measurement
standardization, fuel leak reaction and hose under insertion for aparticular region. Since systemic issues could have multiple root causes
and impacts, our investigative process undergoes a review once perquarter by a cross-functional team. We apply the root cause insight wegain to our understanding of product safety issues, so we can advanceand achieve our goals around the charter activities.
The Quality Problem Database is our Company-run system that gathers andrecords quality incidents from opening to closure. In 2022, we enhanced thesystem to improve communications and increase efficiency. We also beganutilizing the system to include warranty returns which allows for traceability
and capability to better share lessons learned between plants.
Quality fault finding competition in Shenyang, China

Suppliers
Cooper Standard is committed to excellence and remains focused ondelivering value for all our stakeholders, including our suppliers. We build
mutually beneficial partnerships and relationships with our suppliers,
so we can work collaboratively and depend on each other to quickly
notify the other if an issue arises. Our regional supplier development
teams maintain a monthly scorecard for each supplier that includes
performance metrics, such as quality, delivery, packaging and personalsafety performance as well as sustainability-related metrics.
New Product Launches

PROGRESS IN PRODUCT QUALITY & SAFETY TRAINING
We are committed to providing our customers with safe,
high-quality products. The key to successful execution ofthis commitment begins with a strong foundation of robust
training. In 2022, we grew our quality education programs
through the development and deployment of eLearning courses
made available to all Cooper Standard employees. One key
training and development eLearning module that was rolled
out in 2022 was the Product Safety Learning and Awarenessmodule. All manufacturing and engineering salaried employees

Our product launch process, known as CLauS (Cooper Launch System)completed this course and completed the corresponding

requires Product Safety Line Certification (PSLC) before the start ofcourse certification test. In 2023, we plan to roll out this course

production. PSLC involves a multi-disciplinary team review on the plant

to all Program Management salaried personnel. We continued

floor that assesses production and test conditions against customer

to develop our Quality BTO training program in 2022, which

requirements and internal standards and procedures. For every new productidentifies subject matter experts with the ability to train others in

we launch, we complete safety assessment as part of the PSLC process.

standardized quality processes and procedures for the purposeof onboarding new employees.

57

The PSLC process includes a thorough technical design review. This
review assesses and incorporates lessons learned from similar programs,
parts benchmarking and any available warranty data. It helps us operate
more proactively and identify potential failures in the design or process
before we begin full-scale production.

Product Safety
With Safety First as a Core Value, we consider ourselves a safety partnerwith our employees and our customers. We are always immediate with
our response, investigating and reporting any quality and safety concern
to our customers. Even in the rare case that an incident occurs during

We use our PSLC process to guide our standard Product Safety practices.

the product’s use-phase, we are quick to identify the cause, extent and

To ensure our equipment and processes meet our documented best

responsible party – then analyze those insights to mitigate risk of future

practices and prevent future issues, our GPSC meetings review the PSLC

incidents. Additionally, we request our customers evaluate our products

audit results every other month.

and services by submitting scorecards, which help us assess and improve
our quality management.

Internal Risk Assessments
Our engineers are trained to recognize potential product safety issues

Reducing Substances of Concern(PPSI) before our products reach our customers. We define PPSIs as

Compliance with ever-changing chemical regulations is critical to ourissues that affect our ability to meet customer specifications or federal

strategy. Our Global Manager of Chemical Compliance monitors theguidelines. They could also be issues that affect the performance oflegal landscape for amendments that could impact our employees andour products or the consumer use experience. PPSIs may result from

customers. Through our membership in the Automotive Industry Action

purchased material defects, formula changes, flawed specifications,Group (AIAG) Chemical Compliance Work Group, we monitor regulatory

processing defects and/or equipment failures. PPSIs highlight production

activity, discuss potential impact to our firms and work together to develop

processes that could potentially cause harm to the end user, Cooper

processes and tools to increase the efficiency of compliance. Subscriptions

Standard employees, or to workers in our customers’ operations.

to other third-party services provide us with daily updates to the evolving

To establish the baseline for identifying safety risks, we use a tool tolandscape in each region we operate.

standardize our failure identification process. This risk assessment

Our global chemical compliance database serves as a central repository

process strengthens our quality control as well as our ability to addressof all communications with respect to the topic, enabling us to track

issues efficiently.

all issues from initiation through to conclusion. If we are alerted to an

Identifying problems in a timely manner is our priority because it
allows us time to resolve the problem before it reaches our customers.
Regardless of the issue or root cause, finding these problems and solving
them efficiently is important at Cooper Standard. The Global Productemerging Substance of Concern (SOC), we can track the substancethrough our Bills of Materials from supplier through to affectedcustomer(s) and hence involve all parties in any potential engineeringchanges required due to the alert.

Safety Committee verifies all PPSIs for acceptance of closure actions. The

We publish and update product safety data sheets to comply with local

Committee also reviews potential warranty issues for resolution.

laws in China, Korea, Europe and the Americas.

58

As members of the automotive industry, all actors in the supply chain are required to submit Material Data Sheets (MDS) into the International Materials
Data System declaring 100% of the substances making up their products. Each of our plants have at least two people responsible for approving suppliers’
MDSs and submitting MDS to our customers. Through this tool we can determine where an SOC might be present in our suppliers’ materials orcomponents, and act early to potential substance bans.
OUR PERFORMANCE
Cooper Standard delivered quality products to our customers in 2022. Despite facing new challenges and risks to quality and safety, our excellent
quality management maintained our reputable service. As a testament to our quality and safety management, we received a record number of greenscorecards from our customers and had our best quality results in 2022. Our proven quality management and our stellar performance has enhanced
our global design, equipment and process standards for our products.

Fines Associated withFalse Marketing/Advertising

Non-Conformance Violations

Recalls Issued(with labeling or marketing regulation)

Voluntary
Involuntary

Units Recalled

572

0

0

0

0

0

0

0

0

0

0

2019

2020

2021

2022

2019

2020

2021

2022

2019

2020

1
2021

0

0

0

2022

2019

2020

0
2021

2022

59

ENHANCING PRODUCT VALUECUSTOMER TRUST& SATISFACTION
As a part of our Commitment to Excellence, we hold ourselves to high standards and consistently improve through courage, creativity, perseverance
and discipline. We aspire to exceed customer expectations by developing innovative and sustainable products and processes to meet their current
needs, while also identifying future needs to meet evolving market dynamics. We have a long history of fostering long-term and strategic partnerships
with our customers, and we look forward to collaborating with our customers to continuously improve satisfaction.
We hold ourselves accountable through informal and formal discussions with our customers. We leverage customer feedback as well as proactively
identify opportunities to improve to ensure we are able to best serve them moving forward.

LISTEN TO THE VOICE OF THE CUSTOMERTO MEET OR EXCEED THEIR NEEDS AND EXPECTATIONS

Key:

2021

2022

Achieve 98% of green or yellow customerscorecards by 2023.

98.2%

60

OUR PRIORITIES
3-3Over the past few years, Cooper Standard has improved customer
relations. We adapted to evolving circumstances while maintaining quality
service, communications and deliveries. In 2020, 2021 and 2022, we were

BEING A LEADINGPARTNER TO DELIVERSUSTAINABLE SOLUTIONS

agile in the face of ever-evolving challenges of the Covid-19 pandemic
and we demonstrated resiliency by quickly responding to new customer
demands in the wake of supply disruptions due to the conflict in Europe,
global raw material shortages and other supply chain challenges. Utilizing
the feedback from our customer scorecards, we will meet expectations
by evolving to changes in the market. As of 2022, our results exceeded our
expectations and we remain on track to achieve our goal of 98% green or
yellow customer scorecards by 2023. To hold ourselves accountable to ourvalued customers and partners, we will report annually on our progress
and adjust our business strategies as needed.

We align our actions to fulfill our Mission to Be the First Choice of
the Stakeholders We Serve. In 2022, Cooper Standard China received
a letter of recognition for the strong collaboration, design andsupport they received from our team during development of CooperStandard’s PlastiCool® 2000 multi-layer tube solution. The project
was completed under an accelerated timeline and demonstrates our
employees’ ongoing effort and dedication to delivering outstanding
customer service and a high-quality product. In less than twomonths, our team designed a customized product that exceeded

OUR APPROACH
3-3

performance requirements and sustainability goals.
This project would typically be completed within a 10-month time

Our Global Sales Organization (GSO) allows us to monitor the progress

frame; however, our team was able to deliver the first prototype

of our sales goals within our global sales groups. GSO meetings focus

in just eight weeks. This demonstrates our ability to seize market

primarily on commercial discussions, including global customer issues

opportunities and develop valuable solutions. Thanks to the hardand opportunities. In 2022, we realigned our GSO by streamlining ourwork and dedication of our team members, Cooper Standard has

members and increasing the frequency of meetings and discussions tobeen listening to the voice of customers and providing them withincrease our ability to be responsive and to drive results. Through thisexcellent products and services as we work to Create Sustainableorganization and our global customer leads, we have cultivated strong

Solutions Together.

customer relationships.

The customized, lightweight capabilities of Cooper Standard’s

Supporting our GSO, our Commercial Management Office (CMO) tracks

PlastiCool® 2000 multi-layer cooling tube provides strong

our global sales goals and aligns global sales processes and procedures.

chemical and physical resistance during medium temperature

Our CMO acts as the central function, with the support of global sales

applications, and is suitable for all vehicle architectures, including

teams, to promote communication and collaboration between regionsinternal combustion engines, hybrid and electric battery coolingand across functions.

systems. Cooper Standard’s PlastiCool® portfolio offers a wide rangeof material and construction options to address many uniqueapplications for a lightweight and chemical resistant tubing material
across various temperature ranges.

61

Surpassing Customer Expectations

Addressing Market Changes

Cooper Standard is committed to meeting and exceeding our customers’

Cooper Standard understands the importance of monitoring andcurrent and future needs. The primary way we receive customer

responding to the latest evolving market trends. We are diligently

feedback is through our customer scorecards. Customer scorecards aretransitioning our product portfolio to stay ahead of the competition.

unique to each company and tailored to reflect critical expectations

Notably, we are concentrated on the advancements in the electricin the materials we provide. Scorecards typically evaluate a supplier’s

vehicles (EVs) space and discuss these opportunities with customers,

performance in quality, warranty, delivery, launch, service parts, givebacks

stakeholders and within the organization.

and responsiveness. Our customers score each weighted category to
determine an overall cumulative score. A green customer scorecard is one
in which the Company met or exceeded the scoring threshold as definedby each customer. Our best-ever performance on customer scorecards
is reflective of our ability to meet or exceed our customers’ expectations

The electrification market trend is accelerating. In 2021, more than 60% of
our total net new business awards were with EVs. In 2022, our total net new
business awards with EVs jumped to 80%. Cooper Standard is a current
supplier to three of the top five and nine of the top 15 EV nameplates*.

in the areas that they have communicated as the most important. AfterIn response to the recent increased demand for more ESG-related

collecting and analyzing these scorecards, Cooper Standard then updates

disclosure information by our customers, we began updating our global

our approach to align with customer needs. We review the performancequote process to include a sustainability focus. Addressing this increasingof each region during our Regional Senior Operating Team Meetings

demand allows us to be more transparent with our customers about ourand Automotive Leadership Meetings. We also look at our Customer

ESG strategy, priorities and progress.

Satisfaction Index, organized by customer and region, to address
challenges at a local level and monitor trends worldwide. To encourage
improvement, we display comparative plant rankings at each plant,
regularly discuss feedback opportunities and celebrate key successes
and improvements. Indices for current production and development
programs are used with customer feedback from across our salesorganization to develop customer satisfaction scores. We summarize
these scores in a total customer satisfaction overview which we sharewith the Global Leadership Team monthly. For those customers that do
not have scorecards, we monitor customer satisfaction through regularcustomer interviews and leadership meetings, soliciting feedback andensuring we are meeting or exceeding their expectations.

OUR PERFORMANCEWith courage, creativity, perseverance and discipline, we hold ourselves
to high standards as a part of our Commitment to Excellence. In 2022,
Cooper Standard delivered one of our best years in customer service
performance. Despite the continuous challenges carrying over from 2020
due to the global pandemic and incremental issues caused by global
microchip shortages and other supply chain disruptions, we received arecord number of green scorecards from our customers. In 2022, we wererecognized with seven customer awards across all regions and we received
the Environmental + Energy Leader Award for the sustainability benefitsof our Fortrex™ materials platform. In early 2023, we were also recognized
for the sixth consecutive year as a General Motors global 2022 Supplierof the Year. We received our first Nissan Motor Sustainability certificate
based on our EcoVadis Sustainability Assessment and the Stellantis EU
Collaboration & Technology Performance Award.

*based on S&P Global (IHS Markit) global electric vehicle
production estimates for 2023 (excluding Japan)

RESPONSIBLE
BUSINESSIn This Section

Important Links

Business Ethics & Integrity

Code of Conduct

Business Continuity

Supplier Code of Conduct

Responsible Sourcing,

Cooper Standard IntegrityLine

and reliability with our unfailing integrity and transparency. We build

Human Rights & Labor Relations

Automotive Industry Action Groupstrategic, collaborative partnerships with our stakeholders to support

Climate Change, Energy,

General Terms & Conditions of Purchase

To Create Sustainable Solutions Together, we rely on our strong
foundation of honest, ethical and responsible business practices. We holdourselves accountable by constantly updating our data security practices,
upholding our robust ethics and compliance policies, communicating
our expectations regarding human rights and operating our facilities withrespect for the environment and natural resources. We maintain trust

our long-term corporate responsibility efforts and ambitions. In thissection, we demonstrate our commitment to maintaining and constantly

Emissions & Waste

improving our programs, initiatives and strategies to exceed stakeholder

Data Privacy, Cyber

expectations and make a positive impact.

Security & Digitization

Global Human Rights Policy
Responsible Minerals Policy
Global Modern Slavery and Human
Trafficking Transparency
Health, Safety & Environmental Policy

63

RESPONSIBLE BUSINESSBUSINESS ETHICS& INTEGRITYAt Cooper Standard, our Core Value of Integrity Always is at the center of everything we do and it sets our expectations to conduct business honestly,
ethically and responsibly. We cultivate a positive work environment and culture by encouraging ethical practices across our business by adopting andadhering to ethical standards, focusing on the management of business risks and complying with all applicable laws and regulations. In 2022, CooperStandard was recognized for the third time by the Ethisphere Institute as one of the World's Most Ethical Companies® as well as one of America’s
Most Responsible Companies by Newsweek. This recognition is a testament to our values, culture and employees who are dedicated to upholding
responsible business practices throughout the Company.

MAINTAIN A WORLD-CLASS REPUTATION FORCONDUCTING HONEST, ETHICAL &RESPONSIBLE BUSINESS PRACTICES
Key:1

In 2022, we updated these metrics to better reflect the survey question on which the goal isbased. The survey question states, “If I were to observe misconduct, I would be willing to report it".

2

In 2022, we partially restated this goal and updated metrics to better align withcorresponding survey questions and the classification of a "favorable" response.

3

In 2022, we updated this goal and the corresponding metrics to better reflect the survey's
assessment of employee perceptions of organizational justice.

2021

2022

Ensure and validate that 100% of
employees know where to find theCode of Conduct and policies by 2023.

Foster an environment where 100%of employees will feel comfortable
reporting misconduct if they observed
it by 2023.1

94%

93%

Foster an environment where 100%of employees never feel pressured tocompromise values by 2023.2

78%

Foster an environment where 100% of
employees believe their concerns about
unethical behavior or misconduct will
be fully investigated by 2023.3

81%

64

OUR PRIORITIESCooper Standard conducts bi-annual ethical culture surveys,

3-3

administered by Ethisphere, to contribute to our culture of continuous

Our priority is maintaining a world-class reputation for honest, ethicaland responsible practices. At Cooper Standard, we earn and sustain thisreputation through the conduct of our employees. It is our responsibility
to ensure our employees understand how to apply our values in everyday
business activities, know where to turn for support or report concerns andare confident in the investigation and resolution process.

improvement. This survey helps us track progress year-over-year andcompare how the Company is performing against the benchmark
data set of a world-class peer group. Analyzed results from the survey
are shared with our Global Leadership Team and Board of Directors to
discuss further opportunities for improvement and are also shared with
employees to promote transparency.

OUR APPROACH
3-3
Integrity Always is a Core Value at Cooper Standard. It is at thefoundation of everything we do, including our effective ethics andcompliance program which involves robust ethics reporting resources,

TRAINING AND COMMUNICATION

training and education initiatives and risk assessment, mitigation and

In addition to Code of Conduct training, we conducted training on

monitoring initiatives.

the following topics:

Our integrated approach to risk management combines processes
related to ethics and compliance, enterprise risk management andsustainability to detect, prevent and mitigate risks. We maintain an ethics
and compliance program that reflects well-established elements of aneffective program. We continuously improve through regular self andthird-party program assessments, supported by business plans to address‫ ظ‬Our new Confidentiality and Information Classification and Gifts& Entertainment Policies‫ ظ‬Regulation Full Disclosure and Insider Trading for all salaried
employees and Board members‫ ظ‬Conflicts of Interest training and disclosure extended from
Director level and above to all salaried employees

potential gaps in our processes as compared to world-class benchmarks,‫ ظ‬Human Rights and Modern Slavery

including the World’s Most Ethical Companies® population as recognized‫ ظ‬Responding to Employee Concerns for all managers; Speak Up!

by Ethisphere Institute.
As described in the Enterprise Risk Management section, we conduct
an annual risk assessment that identifies potential compliance,

for Integrity for our salaried workforce‫ ظ‬Harassment-Free Workplace training of our U.S. hourly workforce
provided by Human Resources

strategic, financial and operational risks and assesses each for likelihood,

In 2023, we plan to expand our Code of Conduct training to include

impact and speed of onset. We also conduct fraud risk assessments

our hourly workforce, distributing this training via CS Connect andin partnership with our Internal Audit team to better understand ourmanager-facilitated sessions.

Company’s exposure to fraud and identify ways to strengthen our
approach to mitigating fraud risks.

65

2022 ETHICAL CULTURE SURVEY RESULTS
Our Ethical Culture Survey gives us a deeper understanding of our currentof the Program, Perceptions of the Function, Observing and Reporting

performance and helps us identify areas of improvement internally and

Misconduct, and Organizational Justice. Cooper Standard employees’

relative to our peer benchmark. Our peer group consists of companies

willingness to report increased from 88% in 2020 to 93% in 2022,with similar revenue and companies in the industrial manufacturing

indicating that when misconduct occurs, our employees are gaining

sector that are members of Ethisphere’s Business Ethics Leadershipconfidence to file reports which allows us to take corrective action.

Alliance or awardees of the World’s Most Ethical Company designation.
®

In 2022, we are pleased to report that for the first time since conducting
these surveys, our overall score outperformed the benchmark.

Following the results of this assessment, we are implementing actionplans to build confidence in our reporting and resolution process. We
are providing resources to both employees and managers on navigating

In 2022, we saw an increased score across all eight pillars and in favorable

perceived organizational and self-imposed pressure to compromise

responses for every question in the survey compared to our own 2020

standards to achieve business goals. We look forward to communicatingscores. Our 57% response rate indicates an engaged workforce above

results and action plans with our employees to increase transparency

the 49% benchmark, and our results demonstrate our ability to prioritize

and accountability.

and maintain our robust ethical culture despite facing challenges.
Cooper Standard was a leader against benchmark peers for AwarenessOverall score outperformed
benchmark by 1 point

Fell below benchmark in pressure,
perceptions of leadership, andperceptions of peers and environment

Increased willingness
to report

Tremendously strong foundation
at Cooper Standard+4 points from 2020Those who have more frequentconversations with their manager saw
significantly more favorable scores

The degree to which respondents observed
misconduct was low, but the number of
respondents who reported any witnessed
misconduct went up.

Even in the areas where we are below thebenchmark, the increase in our year-overyear scores in those pillars is significant.

66

Integrity Always, Our Code of Conduct
2-23
Our Code of Conduct provides guidance about our Company’s policies.
It is designed to help all stakeholders recognize and address ethicalissues to maintain our culture of integrity and accountability at all levels.
Everyone at Cooper Standard is responsible for understanding andfollowing our Code of Conduct. Available in all our operating languages
and easily accessible – the Code is posted throughout our facilities, oninternal and externally facing websites and on our global employee
communications platform CS Connect.
Our salaried workforce is required to complete annual training through ouronline learning management system and needs to certify they have readand understood the Code of Conduct. We expect all employees and covered
individuals to understand the Code of Conduct, ask questions and seek
guidance when needed and voice their concerns when something doesn’t
seem right. In 2023, we plan to expand Code of Conduct training to ourhourly workforce and look forward to sharing progress on this in the future.
We take integrity seriously. Behavior that falls below the standards as they
are outlined in our Code of Conduct may result in disciplinary action, up
to and including termination of employment. These situations include:‫ ظ‬Actions that violate the Code;‫ ظ‬Requesting others to violate the Code;‫ ظ‬Failure to promptly raise a known or suspected violation of the Code;‫ ظ‬Failure to cooperate in investigations of possible violations of theCode; and‫ ظ‬Retaliation against another employee for reporting a possible
violation of the Code.

Supplier Code of Conduct
We expect our suppliers to comply with our Supplier Code of Conduct, which
lays out clear expectations for all of our vendors that they should conduct
ethical business practices and comply with our policies and the law. The
criteria within the sections of our Supplier Code of Conduct are ranked ina Supplier Profile and Self-assessment workbook. These sections include
Integrity, Human Rights, Safety, Corporate Responsibility and the workbook
must be updated and returned in our supplier portal once every three years.
An expired Supplier Profile negatively impacts the Supplier’s Scorecard,
which is reviewed in the sourcing decision process. Grow suppliers are thesuppliers with whom we have chosen to strategically support our new
business opportunities. We intend to have 100% of our preferred Grow
suppliers upload workbooks by the end of 2023. In 2022, 74% of our suppliers
completed the requirement. In 2023, we will also update our Supplier Codeof Conduct to ensure alignment with the recently published Automotive
Industry Guiding Principles for Sustainability, issued jointly by AIAG and Drive
Sustainability, in conjunction with several major OEMs. These guidelines
contain certain expectations regarding business ethics, working conditions,human rights, health and safety, environmental leadership and supply chain
due diligence for suppliers at all tiers.

67

Reporting Concerns & Seeking Guidance

The Global Ethics and Compliance Committee is a team of corporate

2-26

officers and representatives from the Company who review the
Company’s operational compliance with applicable legal requirements

We expect all stakeholders, including our employees, suppliers andcustomers, to ask questions and voice concerns so we can take action toaddress them. Ethical misconduct is not permitted at Cooper Standard,
but if it does occur, we make it our mission to be informed of the situation
so we can resolve it quickly. To achieve this, we depend on all our teamand ethical standards. This committee regularly reviews data from our
ethics reporting resources to identify opportunities to improve ourcompliance training and communications.
The Cooper Standard IntegrityLine

members to recognize misconduct and report it to one of the ethics

2-26

reporting resources. The sooner we learn about Code violations, thesooner we can end the inappropriate behavior to protect the rest of our

At Cooper Standard, open and honest communications are theworkforce and the business as a whole.

expectation, not the exception. We want all stakeholders to feel that

Our ethics reporting resources are available to respond to questions andconcerns. These include:

they can comfortably approach our supervisors or management teamwith questions and concerns. We established the Cooper Standard
IntegrityLine for sensitive situations where our stakeholders prefer‫ ظ‬Supervisors;

to report anonymously or without direct communication with our‫ ظ‬Representatives of the human resources team;management team. The Cooper Standard IntegrityLine is a toll-free‫ ظ‬Members of the legal department or the Ethics and Compliance office;telephonic and internet-based helpline managed by an independent,‫ ظ‬Members of the Global Ethics and Compliance Committee; andthird-party vendor through which known or suspected violations of the‫ ظ‬The Cooper Standard IntegrityLine (anonymously if desired, where

Code, applicable laws or policies can be reported anonymously whenallowed by local law.

allowed by local law).

In 2022, we received 178 reports to our IntegrityLine, which consisted of: 72% workplace concerns; 9% business integrity concerns; and the remaining
reports related to financial, health and safety, and misuse of corporate assets. Approximately 58% of the reports were from North America, 26% fromSouth America, 10% from Asia Pacific and 8% from Europe.

8%
58%

10%
26%

68

In accordance with our Ethics Reporting Response Policy, each report

Ethics & Compliance Training

is reviewed by the ethics and compliance office and assigned to an

205-2

independent investigator. Before any investigation can be closed,
the ethics and compliance office must review the outcome of theinvestigation and approve the remediation plan for those reports whereconcerns were substantiated. Matters involving integrity, accounting,financial, legal, or regulatory matters are escalated at intake based uponcriteria established in our Ethics Reporting Response Policy. Additionally,
the Audit Committee of the Board of Directors and Global Ethics andCompliance Committee receive a quarterly report, which contains
the ethics reporting statistics for the quarter as compared to peerbenchmarks, as well as review of all significant matters.

It is critical that our employees understand how to comply with ourCompany Code of Conduct and our other global policies. All salaried
employees at Cooper Standard are expected to complete, understandand comply with compliance training annually. Courses are assigned
online through a learning management system that tracks anddelivers training consistently across our worldwide operations. Training
curriculum topics include our Code of Conduct, respect in the workplace,
conflicts of interest, compliance with global anti-bribery, anti-corruption
and competition laws and more. In 2022, 99.6% of our salaried employees
completed our Code of Conduct training and certification program. The
remaining 0.4% are in process and we maintain a follow-up process that isdesigned to achieve 100% completion.
While our core curriculum is consistent across the enterprise, our teammembers can supplement online content with live trainings, with topics

INTEGRITY CHANNEL ON CS CONNECT
In 2022, we utilized CS Connect to launch a dedicated Integrity

determined by our ethics reporting trends, input from our human resources,internal audit and legal departments and changes to applicable laws.

Channel, distribute an Ethics Reporting Series and announce

Our supervisors and managers are the primary ethics reporting resource

upcoming mandatory training.

for our employees. We communicate annually to all managers ourOur goal is to foster an environment where 100% of employees will
feel comfortable reporting misconduct if they observe it and we arecommitted to increasing the transparency of our ethics reporting

Manager’s Guide to Responding to Employee Questions and Concerns
About Business Conduct, which includes an online training course formanagers to understand their role as an ethics reporting resource.

process. As part of these efforts, our Ethics Reporting Series on CS

In addition to our mandatory online and live training sessions, we work toConnect provided our employees with information about how theshare ethics and compliance information across the enterprise by making

reporting process works by sharing metrics from Cooper Standard’s

it readily available both on our corporate intranet and external website.

IntegrityLine as compared to the annual Navex Global Hotline &Incident Management Benchmarking Report. This series provided
information on the total number of Cooper Standard Integrity reports
filed for the years 2018 – 2021, data on Anonymous vs Identified
Reporters and Ethics Reports case closure times.

69

RESPONSIBLE BUSINESSBUSINESSCONTINUITY
As we evolve and prepare to meet the current and future needs of our stakeholders, we take action to mitigate risks through risk management andbusiness continuity efforts. We forecast and manage disruptions to reduce potential negative impacts that may impact our business as we face microeconomic, geopolitical and other business risks. By maintaining a material focus on business continuity, we are ready to face challenges that could
disrupt commercial activities and affect the continuity of our core business operations, including cyber security risks, climate change risks, health andsafety risks, and other business interruption risks.

OUR PRIORITIES
3-3
Cooper Standard maintains a holistic risk management process throughour Enterprise Risk Management (ERM) approach. This approach informs
the strategic and business planning processes through identification,
detection, prevention and mitigation of risks that could impact our
strategic objectives and business goals. We aligned our risk management
strategy with the ERM process through strategic planning and theimplementation of corporate responsibility initiatives that contribute to
the sustainability of the enterprise.

70

Integrated, Strategic Workflow
Our ERM Committee is responsible for creating a holistic, consolidated
risk management approach for all risk classes, including strategic,
operational, financial and compliance. Comprised of senior level
leaders from each functional area of the Company, the ERM committee
works with our Global Leadership Team and the Board to develop
and implement a common risk management language, process andmetrics. This approach was designed to inventory, assess and rank
unmitigated and mitigated risks so the leadership team can determine
the appropriate response strategies that align with the Company’srisk appetite. Our comprehensive strategy allows for effective risk
management, efficient capital allocation and helps embed a risk-aware
culture in our daily operations across the organization at all levels.

ESG
Materiality
Assessment

Strategic
Planning

Risk
Inventory

Risk
Assessment

Risk
Management

Stakeholder assessment
and sustainable
development goals

Specification of strategic
initiatives that consider
ESG priorities

Identification of risks to andof each strategic initiative

Prioritization of risks to bemonitored/managed

Monitoring andmanagement of risks
through documented plans

Corporate
Responsibility
ReportSummary of ESG-related
accomplishments

71

OUR APPROACH

At all our manufacturing locations we have implemented a global

3-3

contingency planning procedure to mitigate risks to our ability to

Each year, we look for new ways to incorporate best practices in ourEnterprise Risk Management process and framework. In 2022, weredesigned our heat map to generate risk action quadrants and consolidate
risk appetite with an emphasis on identifying where action is required.
With the formation of the Global Sustainability Council (GSC) in 2021,
we have worked to further enhance and integrate our ERM andenvironmental, social and governance (ESG) activities. In 2022, we furthered
this integration by associating each risk on our risk register with thecorresponding ESG material topic, informing our risk management team
where ESG materiality may influence our risk tolerance. In 2023, we willcontinue this integration through formal risk identification in our material
topic summary documents utilized during our quarterly GSC meetings.

manufacture and ship product from our plants. We developed a master
contingency plan to address potential risks related to weather, natural
disasters, supply shortages, labor disruptions, transportation disruptions,equipment, tool loss and more. This master contingency plan is updated
and audited annually and is used as a guide when each plant develops
their customized facility plan.
We partner with the Automotive Industry Action Group (AIAG) to collaborate
with key stakeholders to engage in discussions about addressing emerging
threats to the sustainable growth of the automotive industry. AIAG is a
not-for-profit organization that brings together OEMs, suppliers, service
providers, government entities and individuals in academia to collaboratively
find ways to drive down costs and complexity from the automotive
supply chain. AIAG members are kept up to date on developmentsin the automotive industry related to new regulations, standards andrequirements, while helping to shape the future of discussions.

OVERCOMING
ADVERSITY

Our response to ongoing supply disruptions demonstrated our ability
to persevere through challenges. In 2022, Cooper Standard addressed
13 notices of force majeure from suppliers and more than 390 supply
risk incidents without disrupting the production of our OEM customers.
These accomplishments would not have been possible without thecollaboration between our cross-functional Cooper Standard team andTwo thousand and twenty-two presented several disruptive events,
including war, natural disasters and supply chain challenges that
tested the readiness of the organization and effectiveness of our risk
management process. Our response to these disruptions confirmedthat high priority risks are actively managed by risk owners through risk
management plans and in some cases, crisis responses teams.

our supplier partners.
The level of support, creativity and commitment shown by our CooperStandard community sustains our competitive advantage. Our resiliencein 2022 confirmed that we have a strong foundation and a strategicallyaligned business continuity process in place to sustain our operations
despite challenges.

72

RESPONSIBLE BUSINESSRESPONSIBLE SOURCING,
HUMAN RIGHTS & LABOR RELATIONSAt Cooper Standard, protecting human rights is among our top priorities, which is why we are committed to upholding ethical and honest businessconduct and require proper working conditions for all workers throughout our supply chain. Human rights and responsible sourcing are significant
concerns for our stakeholders and we prioritize transparency and accountability to address our human rights progress by communicating our supplierexpectations and standards and disengaging with suppliers whose practices do not align with our values. Through these practices, we always place
integrity and safety first and will remain committed to ensuring our suppliers are aligned with our commitments so that we can uphold our values andprotect the rights of our stakeholders.

IMPLEMENT SCREENING EFFORTS

WITH OUR GROW SUPPLIERS
Key:

2021

2022

Reach 100% response rate on supplier
Sustainable Assessment Questionnairefrom our direct materials Grow
suppliers by 2023.

56%

By 2023, 100% of our direct material Grow
suppliers will have completed a selfassessment with respect to compliancewith our Supplier Code of Conduct,
which includes human rights topics.1

74%

In 2022, we revised the language used in our Grow supplier SAQ compliancegoal to more accurately reflect the assessment requirements.

1

73

SAFE & RESPECTFUL WORKPLACE CULTURE
As a part of our Total Safety Culture, we value Safety First. We work to ensure all employees
are in a physically and psychologically safe workplace, where every individual takes
ownership over their behaviors. We encourage a culture of open communication thatallows all employees to be heard. It is critical that all employees feel safe, respected andvalued in the workplace and we are constantly working to develop new goals to accomplish
this. Read more about our dedication to Workplace Health & Safety.

OUR PRIORITIESOUR APPROACH

3-3

3-3

We set strategic goals with our direct materials suppliers in the Grow

At Cooper Standard, we promote fundamental human rights throughout

category to measure the reach of our supplier screening efforts. At

our value chain. We are committed to ethical and honest business

Cooper Standard, we choose our Grow suppliers to strategically support

conduct and strive to ensure proper working conditions for all workers

our new business opportunities. In 2022, 74% of our direct material Grow

contributing to Cooper Standard products. Our Policy on Global Humansuppliers have updated their supplier self-assessment which includes

Rights sets forth our approach to managing and assuring human rights

assessed compliance to our Supplier Code of Conduct. We recognize thatand is derived from our Code of Conduct, which provides guidance

our human rights screening and auditing targets require committed

about our Company’s policies and is designed to help all stakeholders

focus and attention, and we will report on this goal annually to berecognize and address human rights issues. We require our suppliers totransparent about our progress toward screening our supply chain forengage in responsible supply chain practices as outlined in our Supplierpotential human rights concerns.

Code of Conduct and our General Terms and Conditions of Purchase, andby completing our Sustainability Assessment Questionnaire (SAQ). Our
suppliers and employees are expected to uphold our values and integrityby elevating any potential concerns that conflict with our Policy on Global
Human Rights. Human rights concerns, if any, are immediately elevatedto our Global Leadership Team and communicated to our Chief Human
Resources Officer.

74

HUMAN RIGHTS MANAGEMENT SYSTEM
In 2022, we developed the Cooper Standard Human Rights Management System in line with the UN Guiding Principles on Business and Human Rights.
Our key elements include:
Human Rights Commitments

Human Rights Risk Assessment

Cooper Standard is committed to respecting Human Rights everywhere

In February 2022, we formed a new, cross-functional Human Rights

we operate and throughout our entire value chain. Our Board of Directors

Corporate Responsibility Working Group, consisting of members from

regularly reviews our Policy on Global Human Rights which is aligned

Human Resources, Health, Safety and Environmental, Sustainability,with international human rights principles. Our Responsible Minerals

Purchasing, Compliance and Legal, with oversight from our Chief Legal

Policy Statement details our expectations for supplier compliance with

Officer. Our first Human Rights risk assessment was performed in April

conflict-free minerals sourcing. Both policies were updated in 2021

2022. After reviewing human rights risks associated with the automotive

following discussions with internal stakeholders and to better align withindustry, we identified our top salient human rights risks and internal

best practices, international standards and customer expectations. Ourrisk owners rated these risks by considering two criteria: impact; andsuppliers are made aware of these policies through our Supplier Codelikelihood. Based on these ratings, risk owners are tasked with developingof Conduct, criteria in our Supplier Profile and references in our General

additional risk mitigation plans. Regular risk monitoring for changes

Terms and Conditions of Purchase. We expect our suppliers to adopt

in the human rights context will take place and our Human Rights

and enforce similar policies and extend them to their own supply chain.

Risk Register will be updated annually and mitigation plans revised

Our Policy on Global Human Rights is shared with our workforce in ouraccordingly to prevent adverse human rights consequences. We will

corporate training and in our Code of Conduct.

increase transparency about these Human Rights risks through internaland public-facing channels, including our cross-functional Human Rights
Working Group, Enterprise Risk Management process and our Global
Modern Slavery and Human Trafficking Transparency Statement.

Management of Salient Human Rights Issues
Across our own enterprise, we publicize and train on both our Code of Conduct and Policy on Global Human Rights. Our Supplier Code of Conduct requiresthat our suppliers and other business partners adhere to these same standards and we expect suppliers to hold their own supply chain to the same
standards. We promote our ethics reporting resources both internally and externally to our suppliers to ensure all concerns are elevated in alignment with
our open door and non-retaliation policies. More information about how we manage our salient Human Rights issues – including due diligence, grievancemechanisms and key performance indicators - can be found in our Global Modern Slavery and Human Trafficking Transparency Statement.

75

Human Rights Policy

Human Rights Due Diligence

Cooper Standard is committed to respecting Human Rights everywhere

We have implemented a holistic approach to human rights due diligence,

we operate and throughout our entire value chain. Our Policy on

and respect for human rights is deeply ingrained in our culture. Our

Global Human Rights is aligned with international human rights

approach to managing and assuring human rights is derived from our Codeprinciples including those contained in the International Bill of Humanof Conduct, which provides guidance about our Company’s policies and is

Rights and the International Labor Organization’s 1998 Declaration on

designed to help all stakeholders recognize and address ethical and humanFundamental Principles and Rights at Work. This policy sets forth ourrights issues. Everyone who works at Cooper Standard is responsible forvalues, requirements and practices regarding child labor, forced labor,

understanding and following our Code of Conduct, enabling us to maintainhuman trafficking, modern slavery, diversity and inclusion, freedom of

our culture of integrity and accountability in everything that we do. By living

association, collective bargaining, safe work environment, wages and

our Code of Conduct, we create an inclusive workplace where our successbenefits. All our directors, officers and employees, including part-time,depends on each individual’s involvement in upholding our values. Read

temporary and other personnel working for or on behalf of Cooper

more about our Code of Conduct.

Standard, are subject to the Policy. Our suppliers, contractors and allother partners with whom we do business are expected to adhere to ourstandards, including, but not limited to, human rights and labor practices.
Our directors, officers and employees are responsible for ensuring
compliance with our Policy and applicable laws. The Global Ethics andCompliance Committee, including but not limited to the Chief Legal
Officer and Chief Human Resources Officer, is responsible for enforcing
the Policy. We recently began a regular review of our Policy with our
Board of Directors.

Cooper Standard’s IntegrityLine
At Cooper Standard, our employees are empowered to raise concerns
regarding any adverse human rights impact through our reporting
mechanism, Cooper Standard's IntegrityLine. This reporting mechanism
is also available to our suppliers, other business partners and membersof the public to use their voice to take action against human rights
violations. As a global company, we comply with all applicable regionallaws and honor the principles of internationally recognized humanrights when faced with conflicting requirements. You can read more
about Cooper Standard’s response to addressing concerns andviolations raised to the IntegrityLine under Business Ethics & Integrity.

76

Responsible Sourcing

In addition to our Supplier Code of Conduct, our General Terms and2-6

Conditions of Purchase require that our suppliers comply with all laws,

Sustainability is at the forefront of our long-term goals. We are committed
to sustainably sourcing inputs and raw materials by implementing green
procurement guidelines, increasing the proportion of lower carbon,
lower waste materials and minimizing negative social and economic
impacts from product sourcing. We require our suppliers to engage
in responsible supply chain practices as outlined in our Supplier Codeof Conduct to ensure alignment with our commitments. Our Supplier
Code of Conduct addresses topics such as anti-corruption, anti-bribery,
responsible minerals, human rights (e.g., forced labor, child labor, freedomof association and anti-discrimination), data security, collective bargaining

including those related to human rights. Under our General Terms andConditions of Purchase, our suppliers and all products manufactured
and distributed by our suppliers must comply with all laws, rules andregulations of the countries of origin and destination that relate to
the labeling and transportation of the products. This includes laws
and regulations related to data protection, environmental matters,
wages, hours and conditions of employment, subcontractor selection,
discrimination, occupational health and safety and motor vehicle safety.
For more information about supplier requirements, see our General
Terms and Conditions of Purchase.

rights, health, safety, environment, and chemical compliance, and was

We evaluate suppliers through our Cooper Standard Supplier Performance

designed to align with customer expectations, industry initiatives andRating System’s scorecard and questionnaire. We also request that ourinternational human rights standards.

Grow suppliers complete a Sustainability Assessment Questionnaire (SAQ)on sustainability through the NQC platform, which reflects the values
represented in our Supplier Code of Conduct. Grow suppliers are those wehave identified as critical to strategically growing our business. In 2022, we

77

incorporated new questions in our SAQ to reflect evolving supply chain

away from our SAQ activities. We have recommitted to achieving ourrequirements and emerging due diligence legislation, the growing focus ongoal, and with updates to the NQC platform in place, we expect to reachenvironmental and human rights practices in the supply chain and the need

our goal of 100% by the end of 2023.

for companies to demonstrate effective due diligence in this area. These
questionnaires require our suppliers to disclose their internal Human Rights
Policy and business practices related to child labor, wages and benefits,working hours, forced labor, freedom of association and harassment. We will
increasingly use this system to inform new business award decisions as we
advance. Many of our peers also use the NQC questionnaire to collect supply
chain sustainability data, so it is familiar to our partners.
Cooper Standard set a goal to achieve a 100% response rate on the SAQ
from our direct materials Grow suppliers by 2023. We made progress
towards our target in 2022, though we are behind in our anticipatedprogress-to-date. We faced unprecedented supply chain challenges in
2022 and prioritizing our customers’ production needs took resources

In the event a supplier performs below our human rights standards– through our screening phase or an audit – we partner with them todevelop time-bound corrective action plans to guide performance
improvement. We monitor their compliance progress and revisit theirstatus as a Grow supplier if they are unable to become compliant with our
Policy on Global Human Rights.
Responsible Minerals
Cooper Standard is committed to upholding ethical and socially
responsible business practices and recognizes its responsibility toprotect human rights. We are committed to ensuring our purchased andproduced parts are free from minerals contributing to armed conflicts inhigh-risk areas around the world.
Cooper Standard is a member of the Responsible Minerals Initiative

SUPPLIER AUDITS
To ensure compliance with our Supplier Code of Conduct andperformance expectations for our key suppliers, we conduct
onsite and remote audits each year. In 2022, onsite audits
resumed following remote audits and assessments conducted
in 2020 and 2021 due to pandemic restrictions. All new suppliers(RMI), a resource group supporting more than 400 member companies
in responsible minerals risk assessment, due diligence and reporting.
RMI is dedicated to helping companies make informed choices about
responsibly sourced minerals in their supply chains. Our membership
in RMI helps fund RMI’s audits of mines and smelters globally, as well as
provides us access to smelter analysis tools.

require an onsite audit and all our Grow suppliers must update

Through our support of responsible mineral sourcing initiatives, wetheir supplier portal with their Supplier Profile and Self-

ensure the materials and components used in the products we buy

assessment workbook, including the Supplier Code of Conductand manufacture do not support or fund the inhumane treatment ofscore. If scores do not meet the established threshold, Cooper

workers or contribute to the environmental degradation associated withStandard will require further onsite auditing and may reconsider

mining, regardless of where they are sourced, processed or sold. In 2021,

the supplier’s Grow status.

we updated our Responsible Minerals Policy to align with emerging

By the end of 2023, we will hold 100% of our direct material growsuppliers accountable to have updated their Supplier Profile andSelf-assessment with Supplier Code of Conduct scores. At theend of 2022, 74% of our Grow suppliers have completed this task.

regulations around the world. In addition to tin, tantalum, tungsten andgold, we recognize there are additional, non-regulated minerals that havepotentially high-risk supply chains.

78

Utilizing our Chemical Compliance Management System andInternational Material Data System we perform reasonable-country-oforigin (RCOI) due diligence queries of our supply chain. We consistently
receive responses from 100% of our in-scope suppliers. In 2022, ourcampaign surveyed 51 in-scope suppliers.

Employee Engagement & Human Rights Training
Protecting human rights in our own operations and throughout our
supply chain is essential to Cooper Standard and a significant concern forour stakeholders. Our culture of open communication and transparency
means we equip our employees to recognize and address grievances

Three hundred twenty-eight smelters were identified within our supply

with regards to human rights. We promote our ethics reporting

chain. A smelter analysis tool provided to us through our membership inresources internally and externally to our suppliers to ensure all concerns

the RMI showed that approximately 82% of the smelters are recognized

are elevated without retaliation. In 2022, we communicated to ourto be compliant or conflict-free. The balance was flagged as requiring

workforce our updated Policy on Global Human Rights and Supplieroutreach and we sent them letters urging them to participate in the RMAP.

Code of Conduct. We also conducted awareness training for our salaried

Our annual Specialized Disclosure Report, available in our SEC filings, willreflect any updated reports since year-end.

employees that explained the nature and extent of various humanrights issues, identified practices that could indicate forced labor or
human trafficking was taking place and provided guidance on reporting
potential red flags through the proper channels.

LABOR RELATIONS
We support our employees throughout their careers and develop long-term solutions andstrategies that allow us to support employees throughout challenges and disruptions.
By communicating openly with employees and their formal representatives, providing
freedom of association and ensuring fair management of employees covered by collective
bargaining agreements, we cultivate strong relationships with our employees andstakeholders throughout our value chain. Read more about how we support our employees
in our Talent Strategy.

79

RESPONSIBLE BUSINESSCLIMATE CHANGE, ENERGY,EMISSIONS & WASTE
Cooper Standard is committed to evolving for the future. As our climate changes, we share the same growing concerns of our stakeholders aroundclimate change and are taking action to manage climate risks. It is essential to the longevity of our business and the health of our planet to mitigate
our environmental impact by reducing our energy usage, emissions and waste. In 2022, we invested in advanced technology and energy efficiency
programs to reduce our carbon footprint and developed our sustainability strategy to advance the low-carbon and circular economy. Cooper Standard
strives to be a leader in sustainable manufacturing. By using resources and operating efficiently, we can achieve excellence and ensure a prosperous
future for generations to come.

REDUCE OUR IMPACT
ON THE ENVIRONMENT
Key:

2021

2022

Decrease our solid waste generated by
25% by 2025.

Commit to have 100% waste diversion
rate globally, by 2025.

25%

87.2%

60.5%
Lower our Scope 1 and Scope 2
GHG emissions indexed to sales by
15% by 2025.

Reduce our operational energy
consumption (Scope 1 and 2) indexed
to sales 15% by 2025.

15%

18.9%
Source our electricity from 100%
renewable energy sources, by 2025.1
0%

7.7%

1

We have decided to move away fromthis goal as we reassess our approach torenewable energy

80

OUR PRIORITIESOUR APPROACH

3-3

3-3, 306-2

We work diligently to reduce our emissions and resource consumption

At Cooper Standard, we are focused on increasing our energy

to minimize our impact on the environment and climate change. In

efficiency, reducing our waste generation and addressing our role in2020, we reevaluated our energy and waste goals to better align with

mitigating climate risks. Cooper Standard maintains a Health, Safety

our customers' environmental expectations and we made progress on

and Environmental policy that applies to all employees and Company

those goals throughout 2022. Cooper Standard understands the level

facilities, including directly supervised contract and contingent workers

of expertise required for this undertaking; therefore, we continue toand joint ventures where we have majority ownership. We have various

work with technical specialists to understand how we can best support

environmental programs and policies that address these issues and aour customers in achieving their climate change goals. Our Productglobal environmental management system that meets the requirements

Development group investigates low carbon raw materials while our siteof ISO 14001. Fifty five of our 62 plants are ISO 14001 certified. All five of ourlevel operations departments focus on advancing our energy and waste

German locations are certified to the Energy Management ISO Standard

reduction activities. To hold ourselves accountable to our stakeholders

50001. Our DzierżoniÓw location in Poland and our Vitré location

and achieve our goals, we will report our progress on an annual basis.

in France are also certified to ISO 50001. In 2022, we enhanced our

To reduce our environmental footprint, we need to better understandour current impacts as a Company. In 2021, we implemented marketbased emission factors to calculate our carbon emissions. Currently, we
are in partnership with a third-party consultancy to accomplish a robust
inventory of our Scope 3 emissions data. This thorough process includes

environmental programs to address Company climate-associated risks,
including industry changes, market changes and emerging regulations.
Our Senior Vice President and Managing Director - Global Automotive
oversees the health, safety and environmental programs within our
Global Manufacturing Organization.

collecting data from our internal and external stakeholders, mapping out

Our Vice President of Global Quality, Supplier Development and Health,our value chain, then calculating and quantifying emissions. To date, we

Safety and Environmental is directly responsible for managing operational

have completed the estimation of emission from:environmental impacts and reports on health, safety and environment‫ ظ‬Category 3 - fuel and energy emissions not captured in scope 1 and 2;

issues in weekly staff meetings. Our Director of Global Health, Safety and‫ ظ‬Category 4 and 9 – upstream and downstream logistics;

Environmental is also responsible for creating the methods to develop,‫ ظ‬Category 5 - waste;‫ ظ‬Category 6 - business travel; and‫ ظ‬Category 7 - employee commuting.
We are looking forward to reporting our Scope 3 emissions data in the
future and beginning the first steps towards setting science-based
emissions targets.

implement, monitor and sustain the Health, Safety and Environmental
controls. These topics are reviewed in Global Leadership Team meetings.

81

Climate Change
Cooper Standard has a role to play in the global transition to a lowcarbon economy. By evaluating and managing our climate-relatedrisks and identifying strategies and actions, we will not only contribute to
the betterment of our planet, but also increase our business innovation
and resiliency.

Another way we address climate risk is through reporting to the CDP.
Each year, the CDP helps companies measure and manage their risks
and opportunities on climate change, water security and deforestation.
Cooper Standard first reported to the CDP in 2011 and has publicly
released CDP responses since 2018. Public disclosures like the CDP allow
Cooper Standard to be transparent and keep our stakeholders informedon our sustainability efforts. In 2022, our Water and Climate Change

As previously mentioned, we have begun the process of aggregatingscores dropped slightly to C- and C respectively. Our CDP Climate Change

our Scope 3 emissions data as a part of our long-term business strategy

score reduction aligns with trends in our reporting sector. In 2023, wein mitigating climate risk. This process will help us to reach our goal ofplan to investigate the cause for this change.

setting robust science-based targets in the future.

WATER RISK MANAGEMENT
As a part of our CDP response, we disclose water risk data. We
monitor our water risk through various platforms including WRIAquaduct and WWF Water Risk Filter tools. We mapped each of ourfacilities into the WRI Aquaduct tool and reported the sites that werein Extreme High-Risk areas.
Cooper Standard's Water Risk Heatmap utilizing the WRI Aquaduct tool.

82

Energy & Emissions

To provide additional opportunities for recyclability and become less energy-

302-4, 305-5

intensive, we are working to transition many of our products away fromCooper Standard is committed to reducing our carbon emissions throughour energy-efficient programs, capital investments, innovations andcollaborations. As a global corporation and supplier of sealing and fluid
handling systems and components to diverse transportation and industrial

rubber to plastic alternatives. Our Sales and Product Development teams
are working with customers to transition them to more environmentallyfriendly sealing materials such as Fortrex™, and our fluid handling team istransitioning many of its products from EPDM to plastic alternatives.

industries, we understand our role in combating climate change. We aim

At Cooper Standard, we believe that Collaboration Drives Success. For theto improve energy efficiencies and use more renewable energy sources

past six years, Cooper Standard has partnered with the U.S. Department

to improve performance, decarbonize operations and reduce greenhouseof Energy's Better Plants program as a Honda Supply Chain Cohort

gas emissions. Our partnerships with stakeholders, transitioning to energy

partner. The Better Plants Program is a voluntary partnership initiativesaving production techniques and adopting renewable energy sources

intended to drive efficiency improvements across energy intensive

across all global operations will help us achieve this goal.

industrial companies and organizations. As a participant, CooperStandard’s U.S.-based facilities aim to reduce our total energy intensity
by 25% by 2025, using our 2015 baseline. To date, we have invested in
LED lighting replacement projects and air leak management projects to

CARBON NEUTRALITYACTION COMMITTEE

achieve more optimal energy efficiency. From now and into the future,
we plan to identify opportunities for capital investments that will result in
more energy savings.
Rethinking Our Approach to Renewable Energy
A key component for Cooper Standard’s evolving sustainability strategy
is to increase our renewable energy sources, like biomass, geothermal,

We recently launched our first ever Carbon Neutrality Action
Committee. Despite facing challenges in 2022, we remain committed
to finding new ways to reduce our emissions and carbon usage. The
Carbon Neutrality Action Committee is a cross-functional group of
Cooper Standard senior leaders dedicated to establishing a holistic
view of Cooper Standard’s actions to mitigate the negative effects
of climate change. As we reconsider our previous commitments, wewill find ways to align with our customers and other stakeholders tocreate a roadmap for the future that aligns our ambitions with ouravailable resources.

solar, wind and water. In 2020, we implemented the ambitious goal tosource from 100% renewable energy sources across our global operations
by 2025. We have decided to move away from this goal as we reassess ourapproach to renewable energy. Instead, we have formed a cross-functional
Carbon Neutrality Action Committee to assess our approach more fully to
reduce carbon emissions and redefine our long-term goals.

83

Operational Waste & Waste Management

External Stakeholders

Cooper Standard prioritizes reducing waste from our operations and

At Cooper Standard, we believe we will all do better by working together

facilities. We create innovative ways to reduce packaging, eliminate

to tackle the environmental challenges in manufacturing. We partner

byproducts and improve operational efficiencies through modernizing ourwith a variety of stakeholders, including industry organizations, customers

production lines. By closely tracking our resource consumption, we searchand suppliers to learn about best practices and new ideas. Some of ourfor opportunities to improve our waste management programs. Cooper

important relationships include:

Standard's manufacturing operations generate various waste streams,‫ ظ‬AIAG (Corporate Responsibility Steering Committee - co-chair);primarily EPDM rubber scrap, plastic, cardboard packaging, wood pallets,‫ ظ‬CLEPA Invited Guest;

aluminum scrap and steel scrap – many of which are readily recyclable.
For nonrecyclable materials, we collaborate with vendors to repurpose
the waste. Seven locations in the United States and Canada successfully
implemented a recycling program for our plastic and rubber waste in 2022.
We will further our implementation in 2023 with a focus on expanding the‫ ظ‬Drive Sustainability (Drive+);‫ ظ‬MAPI Sustainability Council (founding member - since 2011);‫ ظ‬Suppliers Partnership for the Environment (invited guest); and‫ ظ‬Key customers work with our product development group to jointly

program to our locations in Mexico. One way we repurpose waste is throughinvestigate opportunities for low carbon raw materials, benchmarking

our partner vendors who convert EPDM, which accounts for about 50%

for recyclable content, reducing waste in manufacturing, etc.

of our total process scrap, into rubber crumb for artificial turf, landscapemulch, sub-flooring and matting and rubberized asphalt. Other waste-toenergy vendors use rubber waste as a supplemental fuel source for cementkilns. In 2022, 69% of our facilities achieved over 90% waste diversion and
we diverted 87.9% of our global production waste. We will work with theremaining 31% of facilities to accomplish 100% diversion by 2025.

ADVANCING THE CIRCULAR ECONOMY THROUGH RECYCLING

Promoting Circularity

Cooper Standard strives to be a leader in sustainable

Cooper Standard strives to advance the circular economy by innovating

to achieve excellence and ensure a prosperous future forrecyclability options. For instance, EPDM rubber has limited diversion

generations to come. Waste diversion is an ongoing area of focus

capabilities, so we are pioneering methods to reduce EPDM scrap asas we aspire to advance the circular economy by innovatingmuch as possible. Overall, Cooper Standard is not a significant generator

recyclability options. We partner with suppliers to expand ourof hazardous waste – accounting for only 9.5% of our total waste in 2022.

recycling programs to better reuse plastics, cardboard andWe generate most of our hazardous waste at our spray booths (filters andpallets. Since 2021, we have recycled nearly 1 million pounds ofwaste coatings) and properly dispose of it following all applicable codes

waste in the U.S. alone, taking another step closer to achieving

and regulations. We will pursue innovative solutions to achieve greater

our goal of 100% waste diversion by 2025.

rates of recycling and work toward zero waste to landfill.

manufacturing, using resources and operating efficiently

84

OUR PERFORMANCE
305-1, 305-2
Our total energy consumption, greenhouse gas emissions and total waste generation were significantly reduced in 2020 as a result of facility closurestriggered by the pandemic. In 2022, we saw an 8.8% reduction in Scope 1 and 2 emissions with a slight improvement in emissions intensity. These
reductions and improvements occurred despite a 3% increase in gross energy consumption in 2022. We center our customer and stakeholder
expectations around emissions reduction by strengthening our sustainability strategy and improving our environmental programs. We look forward
to advancing in this area and believe in being transparent about our challenges. We previously set an ambitious renewable energy target, and in 2022,
we realized our prior goal-setting efforts did not account for the impact of production uncertainties over the last few years. We are no longer on trackto achieve our prior energy goals. While this discovery is disappointing, we choose to see it as an opportunity to revisit all our environmental targets toensure they align strategically with our operational needs. The recently formed Carbon Neutrality Action Committee will work together to develop aholistic approach for the future that aligns our ambitions with our available resources.
ISO 14001 Certification

Reduction in
Scope 1 & 2 Emissions(% of facilities certified)Absolute Scope 1 Emissions

Absolute Scope 2 Emissions(thousand Tonnes)(thousand Tonnes)(year over year / sales)

84%

84%

82%

290.95

8.8%

87%
5.2%

8.0%

81.16
61.34

58.22

2020

2021

208.3662.98

189.91

182.29

2021

2022

-9.7%
2019

2020

2021

2022

Reduction in Total
Energy Consumption

2019

2020

2021

2022

Total Electric Power

2019

2022

Total Manufacturing
Waste Generated(TWh)(year over year)

2019

2020

Plants Reporting
Diversion Rate >90%

(thousand Tonnes)

115.46

27.6%
0.65
0.46

0.47

62%

82.28
0.46

69%

69%

2020

2021

2022

65.67
45.61

1.6%

2.9%

69%

-1.4%
2019

2020

2021

2022

2019

2020

2021

2022

2019

2020

2021

2022

2019

85

RESPONSIBLE BUSINESSDATA PRIVACY, CYBERSECURITY & DIGITIZATION
One of our organization’s top priorities is protecting Cooper Standard’s digital assets and we increasingly rely on data and digital transactions to operate
efficiently and effectively. We take action to prevent potential impacts related to system outages, data breaches, cyber-attacks and other threats to avoid
disruptions in our daily operations. Cooper Standard’s Cyber Security and IT Compliance organization works to uphold our Commitment to Excellence
through protecting the confidentiality, integrity and availability of our systems, data and digital assets. In 2022, we invested time and resources to ensure
we make progress in this evolving environment while meeting compliance requirements and the growing needs of our stakeholders. We will focus on
the successful management of emerging technologies and robust data security efforts to enable and support our flexible remote and hybrid work model,
while reducing the impact of our operations on the environment. Protection of digital assets will remain a critical aspect of our risk mitigation plan
throughout our global operations and one of the many ways we take action to attain world-class results for our stakeholders.

STRENGTHEN & IMPROVEOUR INFORMATION SECURITY
PROCESSES, DATA & INFRASTRUCTURE
Key:

2021

2022

Provide annual training on our phishingdata security practices for 100% of
Cooper Standard employees who workwith our systems by end of 2022.

100%
Implement third-party cyber security
assessments for all known vendors
who pose critical or high risk to CooperStandard systems or information by
end of 2022.

98%

Provide formal cyber security
training for 100% of Cooper Standard
employees who work with our systems
by end of 2022.

94%

86

OUR APPROACH
3-3, 418-1
Our strategic approach to digitizing our global business and transitioning
applications and infrastructure services to the cloud allows us to use ourdata and technology resources more efficiently. Cooper Standard has
continuously worked to grow, strengthen and evolve our “cloud first”
strategy and we consider ourselves early adopters of many cloud-based
technologies. Cyber security has become increasingly important at
Cooper Standard due to our digitization efforts, importance of technology
to the business, cloud enabled accessibility, ongoing remote work and theincreased impact of global cyber-crime.
We align our Cyber Security and IT Compliance Programs to takeadvantage of natural synergies and our mature IT controls environment.
Our Senior Vice President, Chief Information Technology Officer is
responsible for overseeing the risks related to cyber security. The Cooper
OUR PRIORITIESStandard IT Leadership Team manages the global Cyber Security

3-3

and IT Compliance organization and directly reports updates to the

Cooper Standard prioritizes taking proactive, structured and thoughtful
action to strengthen our cyber security initiatives and protection againstinternal and external threats. We continuously evolve to protect the systems,
networks and critical information of our enterprise and stakeholders
to maintain our competitive advantage amidst growing and changing
regulatory requirements in a complex environment. Our external goals
allow us to focus on critical performance indicators making progress
towards achieving these goals. In 2022, we prioritized increasing efficiency
and efficacy as we practiced prescriptive incident response procedures tominimize impacts of potential cyber-attacks or outages. We conducted
two separate table-top exercises, which involved cross-functional businessleaders. Our IT professionals focus on improving existing controls as outlined
by ISO/IEC 27001, which is the foundation of our Cyber Security Program. We
made progress in this space by conducting a risk assessment carried out by

Audit Committee of the Board of Directors twice annually. The Cyber
Security team holds several cyber security industry certifications suchas ISC² CISSP, ISACA CISM and EC-Council CEH. Data Privacy, Cyber
Security and Digitization is also managed as a material topic as a partof the Global Sustainability Council and within the Enterprise Risk
Management Committee. From an accountability perspective, Internal
Audit independently assesses the Cyber Security Program by evaluating
the design and effectiveness of our controls. We have an Architecture
Review Board (ARB) which reviews new IT initiatives to ensure they alignwith our digital strategy. Similarly, our Project Management Office (PMO)
monitors those initiatives throughout implementation to ensure proper
communication and seamless transition. The ARB and PMO processes
include cyber security requirements designed to ensure this topic is
considered from the beginning.

an independent third-party and adding new cyber advisory services. We will

We formally established the Cyber Security Steering Committee inreport our progress annually to hold ourselves accountable and ensure data

2022 to increase visibility of cyber security to our Global Leadershipsecurity across our organization.

Team. This committee has increased frequency of cyber security

87

discussions at the leadership level through biweekly meetings with ourChief Information Technology Officer. Program stakeholders were also
identified and documented to ensure cross-functional responsibilities
were clearly understood.

Digitization & Cloud First Strategy
We are constantly finding ways to improve our digitization efforts andimprove operational efficiency as we strive to modernize our operational
systems that utilize big-data analytics, robots and digital innovation.

We contracted a well-known third-party to conduct a comprehensive,

Cooper Standard’s technical ecosystem is highly robust and complete

enterprise-wide risk assessment. This assessment evaluated Cooper

with global cloud-based platforms for Enterprise Resource PlanningStandard’s Cyber Security Program from a risk perspective and evaluated(ERP), human resources, purchasing, financial planning, product lifecycle

our IT controls for alignment with the ISO/IEC 27001 information

management, incident management, chemical compliance andsecurity framework. We have selected ISO/IEC 27001 because it is an

manufacturing. We leverage our connected enterprise to standardize

internationally recognized information security framework, appropriate

best practices and processes in an efficient manner across our global

for our global business. Based on the assessment results, we developed aorganization. The integration of our technical platforms, with an industry

roadmap for our Cyber Security Program, focused on addressing high-risk

leading integration hub, has improved productivity and enabled us tovulnerabilities first. As a result, we have established a strong foundation

share capabilities across the business.

for the program and addressed gaps identified during the evaluation.
To stay current, we continuously monitor for significant changes andemerging risks and adjust the roadmap as needed.

We use an intelligent cloud ERP system with cross-industry support, builtin analytics, enhanced performance and approach cloud applications
and services thoughtfully with cyber security in mind. To mitigate risk, we

We benchmark against peers to stay competitive and aligned withrequire cloud-based service providers to provide independently certified

best practices in the cyber security industry. For example, in 2022 weassurance of their security controls based on internationally recognized

used Gartner IT Key Metric Data to benchmark against peers to better

standards (e.g., ISEA 3402, SOC 2, etc.). Our third-party cyber security

understand Cooper Standard’s investments on cyber security.

program is designed to ensure we partner with reputable vendors andthat the data they interact with is adequately protected. We will protect
our cloud-based resources with the same high level of scrutiny as our
traditional on-premises applications.

88

COOPER STANDARD’S CARBON FOOTPRINT REDUCTION BY
MOVING ENTERPRISE DATACENTERS INTO THE PUBLIC CLOUD
Cooper Standard is dedicated to strong environmental, social andproviders run their workload much more efficiently than independent

governance (ESG) initiatives. Our ESG considerations extend beyond

enterprise datacenters can operate. This leads to a significant reduction

developing and manufacturing our products to our decision-making

in energy and carbon emissions. Cooper Standard saves more than 175

processes related to our approach to data center services and our

metric tons of carbon dioxide each year by having migrated our corporatetransition to the cloud. Our cloud-first strategy not only limits up-front

enterprise datacenters into the cloud, with plans to further reduce our on-

investment, improves security and makes the most efficient use of IT

site datacenters and increase our annual savings to 225 metric tons.

talent and support, but it also has positive environmental impacts.

The elimination of two data centers resulted in the reduction of

Cooper Standard has been executing a cloud-first strategy with theapproximately 560 MWh (Megawatt hours), or approximately 218kg

defined goal to reduce the on-premises server and compute footprint(481,489 lbs.) of CO2 emissions. By transitioning these services to theand eliminate physical enterprise datacenters. We have achieved this goalmuch more power efficient cloud, we save around 175kg (385,191 lbs.) of

by migrating workload into public cloud datacenters. The cloud provides

CO2 emissions annually. To put that into perspective, that is the equivalent

more flexibility and better reliability, which allows for improved innovationof one year of gas consumption for the average vehicle in the U.S., for 40

and faster time to market. The cloud also helps to increase operational

vehicles, or about 21 million smart phone charges and about as much CO2

efficiency and better supports the remote workforce, which is essential

as 40,000 trees can consume in a single year.

for globally distributed enterprises like Cooper Standard. An additional
advantage of running compute workload in the cloud is that major cloud

175

~560

175kg

metric tons of carbon dioxide

reduced megawatt hours

emissionssaved each year

due to elimination of two

saved annuallydata centers

89

Digitization Solutions

Data Privacy & Cyber Security

Pulse Print@ Source – Our Pulse Print@ Source solution was built in

Cooper Standard is committed to complying with all relevant privacy

2018 to help lessen the growing number of customer order mislabels.

and information security laws and regulations. To protect the privacy

Our IT Digital Manufacturing team provided a solution that forces theand security of all our stakeholders’ personal information and intellectual

labels to be printed directly at the work cell, allowing only a single set

property, we adhere to HIPAA, the EU General Data Protection Regulationof labels to print when the box has the correct number of parts packed(GDPR) and all other relevant laws and regulations. Our efforts protect ourin it. There are additional features that provide security checks throughcustomers and current, former, and potential employees, from cyber-control labels along with PLC automation. We implemented this processattacks, data loss and other unauthorized events during data collection,

in approximately 1,000 cells around the world, including 150 cells added indisclosure, retention and disposal.

2022. We have identified an additional 150 cells to be targeted in 2023.
SAMBA Dashboard – In 2022, we implemented the Sales andManagement Business Analytics (SAMBA) Dashboard to analyze theprofitability of sales by customer program. This self-service dashboard
updated daily provides sales and costs insights to our plants andcommercial teams to better manage the cost-effectiveness of our

QUICK RESPONSE, LASTING CHANGE

operations by customer and sales price by program.

In 2022, as Cooper Standard and the rest of the world watched the crisis

Managed Print Services – In 2021, we moved to 100% managed print

risk. Our IT organization made the decision to focus on identifying

services paying only per page, introducing global billing, reporting andoversite, and reducing cost. We adopted cloud print, eliminating a print
server at each location. This enabled release print, which allowed fordeleting abandoned printouts, touchless badge authentication anddefaulting globally to double-sided and black and white print to reduce
paper and cartridge use in consumables and saving costs. We reduced
the overall number of printers by 20% and replaced older printers with thelatest version of Energy Star certified printers which help to ensure we aremaking the most efficient use of power consumption for print services.
In 2022, we saved 88 trees (735,000 pages) worth of paper in abandoned
prints and 98 trees (814,000 pages) worth of paper saved from double
sided print. We are also targeting the reduction of consumables fromentering the landfill by taking advantage of Lexmark’s Cartridge
Collection Program where we have collected 152 cartridges across foursites and plan to extend this program globally.

in Europe unfold, we recognized the conflict would increase cyberthe highest risks related to the conflict to ensure our attention was on
those most likely to be exploited in the new global environment. First,
we evaluated our internet facing systems and eliminated or moved all
exposed applications running on end-of-life servers. While they were on
the roadmap to be replaced, the new level of threat increased the needto move quickly.
Another significant security improvement was the transition from asignature based anti-virus application, to a modern endpoint detection
and response solution. The new solution not only utilizes signatures
to identify known threats, but also leverages artificial intelligence andmachine learning to recognize unexpected and unusual behavior
by the user or computer. In combination with moving to the new
solution, we also added a managed detection and response service toprovide global 24x7 monitoring and response capabilities.

90

Our Cyber Security Program is built on a collection of fundamental
security controls, focused on the overall protection of Company andstakeholder data. Company leadership has defined the following
objectives for information security:‫ ظ‬Establish proper governance for the Cyber Security Program;

NO PHISHING!

‫ ظ‬Create a secure digital operating environment (apps, networks, systems,etc.) designed to protect critical data and to prevent business disruption;‫ ظ‬Develop and practice incident response, business continuity and disaster

Email remains one of the highest risks and most exploited

recovery processes to minimize the impact of a major incident; andtechnologies used by cyber criminals. To reduce risk in this area, we‫ ظ‬Meet all compliance requirements and develop program metrics toutilize email filtering to block more than 6.5 million threats each

ensure effectiveness.
To achieve these objectives, we emphasize fundamental security measures,such as strong access controls, sound cyber hygiene (e.g., patching andmalware protection) and employee awareness training. With thesecontrols in place, we have not detected, or been notified of any complaints
regarding breaches of customer privacy or loss of customer data.
As a result of our “mobile-first” strategy, we extend protection beyond our
network by applying protective controls that work while in the office andwhen working remotely. Using our cloud proxy solution, we provide a highlevel of protection from web-based threats, so that employees can work
securely on the corporate network and while working remotely in cafés,hotels, homes or other environments outside of our control. As a result,
we block an average of 1.55 million threats and 254 million potentiallyharmful activities each month.
Awareness Training

month. This represents about 80% of all external email sent to thecompany. In 2022, we increased protection by adding the capability
to analyze and block malicious attachments and websites hiddenin emails. Additionally, we have enabled automated response to
expedite the action when we detect a malicious email has beendelivered. Once the bad email is identified, it is automaticallyremoved from each mailbox it was sent to, even if it was forwarded
from one user to another.
Given the rising number of email threats, phishing schemes andtheir sophistication, Cooper Standard conducts tests monthly to
improve our employees’ ability to recognize malicious messages.
Using phishing-simulation testing globally, we send suspicious
emails, based on templates mimicking active phishing campaigns
on the Internet. If employees identify and report the risk, they arecongratulated. If they do not correctly recognize the threat, thesystem immediately provides a real-time learning message andenrolls them in a subsequent phishing training course. In 2023, we

At Cooper Standard, we understand our role in ensuring our employees arehave established targeted improvement in this area by setting goals

equipped to be our first line of defense to support our organization’s cyberof 5% (vs. 5.8% in 2022) or less phish test failures and 20% or moresecurity efforts. By delivering training and increasing awareness, we help

phishing emails reported (vs. 14.7% in 2022). Our goal is to help ourour employees recognize risks and take the proper steps to mitigate andglobal team be our first and strongest line of cyber defense.

report them. To prevent information security breaches before they occur, we
proactively facilitate awareness training for employees that starts as part ofthe onboarding curriculum for all new salaried Cooper Standard employees.
Training is also delivered annually to ensure this information is top of mind.

91

Each month, Cooper Standard provides cyber security awarenesscampaigns to reinforce the importance of cyber and to help employees
stay current, via email announcements and communications throughour Intranet, and CS Connect, our global employee communications
mobile app. These campaigns are designed to highlight current security
threats and to ensure a more consistent dialogue around the topic. Given
the ever-evolving nature of cyber security, it is important to provide
continuous updates. In October 2022, we conducted our annual cybertraining initiative to take advantage of Cyber Security Awareness monthand increased to weekly messages to reinforce employee awareness andto help communicate their role in keeping the Company safe.
Finally, continuously helping our employees recognize email phishingattempts is a primary focus of our cyber security awareness program.
To improve results, we deliver phish tests monthly which use templates
based on actual malicious emails. During the testing, if a user clicks thelink, they are provided training in the moment to help them understandhow to avoid this in the future. They are also enrolled in a short training
course to further explain common indicators of a phishing attempt.

Third-Party Cyber Security
Third party risk management has been an important focus of CooperStandard since implementing the Third-Party Cyber Security Programin 2019. Highly publicized supply chain attacks such as NotPetya andSolarWinds serve as examples of the potential risk these relationships
can impose on the Company. Having evaluated nearly 500 vendors since
the program was established and averaging an increase of five “critical”
or “high” vendors per year, we have applied lessons learned over time
to continuously mature the program. In line with the increasing threats
associated with third parties, we plan to further enhance the program byestablishing continuous monitoring in 2023. Our goal is to improve visibility
and increase our effectiveness in defending this area.
Incident Response Procedures
Cooper Standard continuously works to update and strengthen our
Incident Response (IR) Program. Our IR program defines response
procedures and prescriptive controls designed to streamline response
to incidents, when and if they occur. Our designated cross-functional
Incident Response Team consists of leaders from human resources,
global communications, legal, internal audit and information technology.

MULTI-FACTOR AUTHENTICATION (MFA)
We recognize identity is critical in today’s digital environment and are focused oncontinuous improvement in this area. To ensure individuals are who they “say” they are,we use multi-factor authentication (MFA) for all users of specific applications at CooperStandard. To ensure maximum benefit, we require MFA for all users of our highest risk
applications by default. In 2022, we expanded the use of MFA by implementing this foradmin logins and we will use MFA as a core capability to reduce risk moving forward. With
increased adoption of MFA, cyber-criminals have started changing their attack methods
to sidestep security. To combat this and to improve effectiveness of MFA, we will begin
requiring increased user interaction during the MFA process.

92

Cooper Standard’s Incident Response Team is dedicated to maintaining a culture of continuous improvement.
In 2022, in consideration of the increased risk associated with cyber-threats resulting from the conflict in Europe, we prioritized improving response andrecovery. We conducted two table-top exercises and used the lessons learned to update the IR Program and associated procedures. Additionally, we
engaged with a third-party expert to review our IR plan and assist us with creating a runbook to deal specifically with a ransomware event.

Assurance, Evaluation & Testing

Looking Ahead

To ensure the integrity of our cyber security and information technology

Moving into 2023, we have targeted initiatives planned to reduce risk andcontrols, we conduct various forms of testing each year. Many of theincrease our ability to quickly respond and recover when issues occur. We

controls associated with our Cyber Security Program are audited

will follow our philosophy of “when, not if” and maintain a state of readiness

annually by Internal Audit and an independent third party to attest to ourby testing and updating our Incident Response Program to ensure we

Sarbanes-Oxley compliance. The Cooper Standard Internal Audit teamadapt to new threats appropriately. In addition, we plan to formally establish

also conducts an annual review of cyber security controls, policies anda Business Continuity and Disaster Recovery Program to contribute to ourprocesses. Additionally, we conduct penetration testing twice annually to

preparedness philosophy and maintain a state of readiness.

validate that we have adequately established technical security defenses
to protect against current and evolving threats.

Third party risk management is a critical topic for Cooper Standard
and our customers. We are committed to being the first choice ofIn addition to the activities normally conducted on an annual basis, we

our customers and to demonstrate that, we will be pursuing TISAX

took additional steps in 2022 to evaluate the program and our controls.

certification for several sites. This will allow us to provide assurance we are

We partnered with an independent third party to have them conduct ataking the right, and necessary steps to secure stakeholder information.

risk-based assessment of the Cyber Security Program. The assessment

With respect to validating the security posture of our vendors, we plan toalso provided analysis of our controls compared to ISO 27001. Thisenhance our Third-Party Cyber Security Program by transitioning frominformation helped us review and revise our roadmap to ensure wepoint in time evaluations, to continuous monitoring.

focus on the most critical initiatives. With respect to penetration testing,
we conducted our first internal test in 2022, which is something we willcontinue to include moving forward.

Cyber security is an ever-changing, multi-dimensional business topic
that every organization must address, but each requires a unique andpersonalized approach. In 2023, Cooper Standard plans to move toward athreat-based defense strategy by analyzing data to identify cyber threatstargeting the Company. With that information, we will be able to focus
our resources on defending against the specific tactics, techniques
and procedures being used against us. As we progress along our cybersecurity journey, we will continuously learn and evolve to ensure theconfidentiality, integrity and availability of our stakeholder data.

93

2022 CLOSING SUMMARYHELPING ENSURE A SUSTAINABLE FUTURE
At Cooper Standard, we believe in the power of our unified approach to addressing sustainability throughout our operations as we strive for world-classexcellence and live by our Purpose: CREATING SUSTAINABLE SOLUTIONS TOGETHER. Everything we do is aligned with our Mission – to Be the First
Choice of Stakeholders We Serve. As we operationalize sustainability, we remain focused on achieving our goals and integrating our material topics into
our business decisions. By engaging with our customers, workforce and partners, we will find innovative solutions to new challenges in an evolving world.
WINNING IN THE WORKPLACE

ENHANCING PRODUCT VALUERESPONSIBLE BUSINESSOur ongoing initiatives in talent acquisition,

We meet the demand caused by the

Our Ethical Culture Survey results demonstrateengagement, learning, development andaccelerating shift to electric vehicles (EVs)an increased score across all eight pillars andinclusion help us to uplift and empower ourby creating new fluid handling systems andfavorable responses for every question compared

workforce of approximately 23,000 people in

we are working to position Cooper Standard

to our own 2020 scores. Our response rate

more than 120 facilities across 21 countries.

as a leading EV materials supplier. We areindicates an engaged workforce, which is a clear

taking proactive steps to transition our

indicator of our ability to maintain our robust

portfolio to meet the needs of electrification

ethical culture despite facing challenges.

We maintained our commitment to Safety
First as part of our Total Safety Culture anddemonstrated this commitment throughour improved Total Incident Rate thatin a sustainable way, while driving value andmaintaining profitability.

We developed and implemented the CooperStandard Human Rights Management Systemoutperformed the world-class benchmark for

Cooper Standard continues to deliver quality

which includes the cross-functional Humanthe sixth consecutive year.

products to our customers. Despite facing newRights Corporate Responsibility Working Group

challenges and risks to quality and safety, ourto help prioritize and identify top salient humanexcellent quality management maintained ourrights risks and develop mitigation plans.

To contribute to the Cooper Standard
Foundation’s Mission to improve ourcommunities, we made progress towards our
focus areas by making direct donations andgrants to charitable organizations.

reputable service. As a testament to our quality
and safety management, we received a record
number of green scorecards from our customers
and had our best-ever quality results in 2022.

In 2022, we launched our first ever Carbon
Neutrality Action Committee, a cross-functionalgroup of Cooper Standard senior leaders
dedicated to establishing a holistic view of
Cooper Standard’s actions to mitigate thenegative effects of climate change.

LOOKING AHEAD: As we make progress on these efforts, we will set new goals in 2023 that embrace how we are evolving for a new future. We
look forward to remaining focused and dedicated to our corporate sustainability efforts that are critical to our success in the future and we will
share our progress.

94

APPENDIXOUR HISTORY
1960 - 1999

2000 - 20092010 - 2019

Cooper Tire established automotive division

Cooper Standard Holdings Inc.
purchases business from Cooper Tire

Listed on NYSE : CPS

Launched

Launched i Innovation Process

CS Open Innovation

3

Opened Global Technology Centerin Livonia, Michigan, U.S.
Established Advanced Technology Group
Transitioned to a global organization
Divested product lines:
thermal and emissions; trim;
and anti-vibration systems

2020 - PRESENT

Established
Liveline Technologies®
Divested European rubber
fluid transfer and specialty
sealing businesses, andcertain India operationsFirst commercial
agreement for the use

Company established global footprint and market leading positions through acquisitions and joint ventures

Standard Products Company

of Fortrex™ in footwear

Siebe Automotive

Jyco sealing (North America / China)

Launched Global

Gates Corp. Automotive Hose

Huayu-Cooper Standard (China)

ITT Fuel Handling

AMI Industries’ fuel and brake business

Sustainability Council

Metzeler Automotive Profiles

Lauren Manufacturing
LS Mtron’s automotive parts business
Hutchings Products
Formed Sujan JVExpanded Nishikawa PartnershipRedefined Purpose, Mission,
Values and Capabilities
Joint development
agreement with Saleri
for innovative dynamic fluid
control technology

95

KEY METRICS
2019

2020

2021

2022

Revenue (USD billions)

$3.11

$2.38

$2.33

$2.53

Adjusted EBITDA %

6.5%

1.5%

(0.3%)

1.5%

Free cash flow (USD millions)($67)($108)($212)($107)

North America

53%

51%

52%

58%

South America

3%

3%

3%

4%

Europe

28%

26%

24%

20%

Asia Pacific

16%

20%

21%

18%

# of countries of operation

21

21

21

21

# of facilities

174

121

129

135

North America

43% (7%)47% (7%)47% (7%)49% (8%)South America

6% (0%)

5% (0%)

6% (0%)

7% (0%)

Europe34% (2%)30% (3%)29% (1%)27% (1%)

Asia Pacific

OVERVIEW

Economic Performance

Total Sales by Region

Operations

Employees by Region(% contingent)Innovation

17% (1%)17% (4%)

18% (4%)17% (3%)New customer programs launched

271

137

155

122

Annual net new business (USD millions)

$451

$190

$186

$246

27,96825,10022,58422,940

-

-

-

2,907

9,801

9,847

8,312

11,758

-

-

-

4,498

% internal fill rate (director & above)

70.3%

55.6%

60.0%

80.8%

% internal fill rate (manager level)

47.0%

58.6%

50.4%

59.3%

WINNING IN THE WORKPLACE
Total number of employees (includes contingent workers)
Total number of contingent workers
Total number of new employee hires (includes contingent workers)
Employee Retention

Talent Development

Total number of new contingent workers hired% voluntary employee turnover

14.7%

12.7%

19.8%

19.2%

% total employee turnover

26.0%

26.0%

34.5%

35.8%

-

-

99.7%

99.9%s% employees receiving performance reviews (% of eligible salaried employees)

96
2019

2020

2021

2022

% women in the enterprise (salaried & hourly)

35.9%

36.4%

37.5%

38.4%

% women in leadership (vice president & above)

24.0%

20.0%

22.2%

22.2%

% women in leadership (including directors & above)

17.2%

16.4%

16.7%

15.9%

82%

83%

82%

81%

WINNING IN THE WORKPLACE

Diversity & Inclusion% U.S. Workforce by Ethnicity
White

Workforce
Demographics

Black

9%

8%

8%

8%

Hispanic

4%

3%

3%

4%

Asian

3%

3%

3%

3%

Other

2%

3%

3%

4%

Under 30

20%

19%

19%

18%

30-50

43%

44%

41%

42%

Over 50

37%

38%

40%

41%

Not disclosed

0%

0%

0%

0%

Total Recordable Incident Rate (employees & contractors / workers)

0.50

0.32

0.40

0.33

Lost Time Incident Rate (employees & contractors / workers)% U.S. Workforce by Age

Workforce Health& Safety

Community Involvement

0.25

0.11

0.21

0.14

Total Days Away, Restricted or Transferred (employees & contractors / workers)

-

-

1,318

1,221

# of fatalities

0

0

0

0

# of locations with 0 incident rate

19

29

23

25

% of facilities ISO 45001 certified

24.7%

24.7%

37%

42%

# of charities supported (since 2013)

120+

125+

140+

146+

# of countries participating in community engagement (since 2013)

18

18

18

18

Annual contributions (USD millions, approximately half from employee engagement)

$1.5

$0.7

$0.6

$0.4

Total contributions (USD millions, approximately half from employee engagement)

$13.5

$14.2

$14.8

$15.4

# of community engagements held

35,00037,00047,00055,870

-

-

-

7,059

Total employee volunteer hours
ENHANCING PRODUCT VALUE
Innovation
Innovation, Materials& Product Lifecycle# of patents

23

23

8

21

% research & development spend

3.7%

4.3%

3.9%

3.2%

11

16

7

12

Major innovations introduced to market

97
2019

2020

2021

2022

-

-

-

-

$424M / 14%$520M / 22%$725M / 31%

-

5%

8%

-

-

# of recalls issued

0

0

1

0

# of units recalled

0

0

572

0

# of voluntary recalls

0

0

0

0

# of involuntary recalls

0

0

1

0

Fines associated with false marketing / advertising

0

0

0

0

# of violations for non-conformance w/ labeling or marketing regulation

0

0

0

0

% of significant product and service categories for which health and safety impacts
are assessed for improvement

-

-

-

-

ENHANCING PRODUCT VALUE
Product Lifecycle
Innovation, Materials& Product Lifecycle% of recycled materials used in products% revenue from products providing resource efficiency benefits

1% of products with resource-use benefits for customers or consumers
Product Quality

Product Quality& Safety

Customer Scorecards
Customer Satisfaction% negative

7%

3.7%

2.4%

1.8%

% positive

93%

96.3%

97.6%

98.2%

Total Directors

10

10

11

10

# of Independent Directors

9

9

10

9

% Independent Directors

90%

90%

91%

90%

White

-

80%

82%

60%

Black

-

0%

9%

10%

Hispanic

-

10%

9%

10%

Asian

-

0%

0%

0%

Other

-

0%

0%

10%

Not disclosed

-

10%

0%

10%

Under 30

-

0%

0%

0%

30-50

-

0%

0%

0%

Over 50

-

100%

100%

100%

RESPONSIBLE BUSINESSBoard of Directors% Directors by Ethnicity

Board Demographics% Directors by Age

1

The Company is re-evaluating a better approach to determine the metric “% revenue from products providing resource
efficiency benefits” and may share updated data in our 2023 report.

98
2019

2020

2021

2022

Male

-

-

-

50%

RESPONSIBLE BUSINESS% Directors by Gender
Board Demographics

Business Ethics& Integrity

Political Contributions

Responsible Sourcing

Female

-

-

-

30%

Undisclosed

-

-

-

20%

Employees completing Code of Conduct Training

-

98.2%

99.0%

99.6%

Political contributions

$0

$0

$0

$0

Lobbying contributions

$0

$0

$0

$0

Trade association expenditures

$0

$0

$0

$0

% of new suppliers screened using social criteria

-

-

-

0%

Average number of social issues per audit

-

-

-

0

% of new suppliers screened using environmental criteria

-

-

-

0%

Average number of environmental issues per audit

-

-

-

0

% of procurement budget used for significant locations of operation that is spent
on suppliers local to that operation (such as percentage of products and services
purchased locally)

-

-

-

58%

% of sites with ISO 14001 certification

84%

84%

82%

87%

% of sites with ISO 50001 certification

-

-

10%

11%

ISO Certification

EnergyEnergy, Emissions& Waste% grid electricity

100%

100%

100%

100%

Natural gas (TWh)

0.43

0.34

0.32

0.34

Coal consumption

-

-

0

0

-

-

0

0

Electric power (TWh)Other fuel (diesel)

0.65

0.46

0.47

0.46

Energy intensity (MWh / $1000 revenue)

0.34

0.33

0.34

0.32

% renewable energy% reduction in energy consumption

0

0

0

0

2.9%

27.6%

(1.4%)

1.6%

99
2019

2020

2021

2022

Absolute Scope 1 emissions (thousand tonnes)

81.16

61.34

58.22

62.98

Absolute Scope 2 emissions (thousand tonnes)

290.95208.36189.91

182.29% reduction in Scope 1 and 2 emissions (indexed over sales)(9.7%)

5.2%

6.2%

8.8%

Total CO2 emissions (thousand tonnes)

372

270

248

245

Total CO2 emissions Intensity (tonnes CO2e / $1,000 revenue)

0.11970.11350.10650.0971

24,552

4,759

4,488

5,524

RESPONSIBLE BUSINESSEmissions

Waste
Energy, Emissions& WasteTotal manufacturing waste to landfill (tonnes)% hazardous waste

4.0%

2.8%

4.9%

9.5%

% waste recycled

78.7%

94.2%

93.2%

87.9%

% of plants reporting >90% diversion rate

62%

69%

69%

69%

Total waste generated (tonnes)

115,462

82,28365,67245,610Total waste to landfill (tonnes)

24,552

4,759

4,488

5,524

Total hazardous waste (tonnes)

4,561

2,319

3,229

4,320

Total waste intensity (tonnes / $1,000 revenue)

0.037

0.035

0.028

0.018

2,702

1,934

1,857

1,765

-

-

-

0

Total water discharge

2,702

1,934

1,857

1,765

Total water consumption

2,702

1,934

1,857

1,765

Total freshwater use intensity (cubic meters / $1,000 revenue)*

0.869

0.814

0.797

0.699

% of water usage in high or extremely high baseline stress area

Water
Water withdrawn from public inlet (1,000 cubic meters)
Water withdrawn from surface water (stream)
Other Environmental

Data Privacy, Cyber
Security, and Digitization

26.0%

31.3%

29.5%

46.4%

# of substantiated complaints received concerning breaches of customer privacy

-

-

-

0

# of substantiated complaints received concerning breaches of customer privacy
from outside parties

-

-

-

0

# of substantiated complaints received concerning breaches of customer privacy
from regulatory bodies

-

-

-

0

100

GRI / SASB CONTENT INDEXThis quick-reference index contains disclosures from the GRI Standards and SASB Auto Parts Sector Standard. Cooper Standard has reported theinformation cited in this content index with reference to the GRI Standards. The disclosures referenced are at least partially fulfilled.
GENERAL DISCLOSURES
Disclosure

Disclosure #Description

Location Within Report

Page #THE ORGANIZATION AND ITS REPORTING PRACTICES
2-1

GRI

Organizational details

About Cooper Standard
About Cooper Standard: Global Footprint

4, 12

2-2

Entities included in the organization’s sustainability reporting

2022 10-K

N/A

2-3

Reporting period, frequency and contact point

2022, Annual, May 17 2023 , Our Focus

22-4

Restatements of information

2-5

External assurance

About Cooper Standard: Cooper Standard’s ESG Goals
Responsible Business: Business Ethics & Integrity
This report has not been externally assured

22, 63
N/A

Activities & Workers
About Cooper Standard: Global Footprint
GRI

2-6

Activities, value chain and other business relationships

About Cooper Standard: Products & Services
Responsible Business: Responsible Sourcing, Human Rights & Labor Relations

12, 13,74

2-7

Employees

About Cooper Standard: Global Footprint

12

2-9

Governance structure and composition

About Cooper Standard: Governance

7

2-10

Nomination and selection of the highest governance body

About Cooper Standard: Governance

7

2-13

Delegation of responsibility for managing impacts

About Cooper Standard: Governance

7

Governance

GRI

2-15

Conflicts of interest

Code of Conduct

N/A

2-16

Communication of critical concerns

Code of Conduct

N/A

2-19

Remuneration policies

Proxy Statement

N/A

2-20

Process to determine remuneration

Proxy Statement

N/A

2-21

Annual total compensation ratio

Proxy Statement

N/A

101
Strategies, Policies & Practices
Statement on sustainable development strategy

Message from the CEO

3

2-23

Policy commitments

Cooper Standard manages risks and impacts of our products and operations but
does not formally address the precautionary principal globally. Cooper Standard
does not currently endorse nor subscribe to any charters or principles.

N/A

2-25

Processes to remediate negative impacts

2022 10-K

N/A

2-26

Mechanisms for seeking advice and raising concerns

Responsible Business: Business Ethics & Integrity

65

2-28

Membership associations

About Cooper Standard: Awards & Recognition

15

Approach to stakeholder engagement

About Cooper Standard: Materiality & Stakeholder Engagement

17

Description

Location Within Report

Page #

3-1

Process to determine material topics

About Cooper Standard: Materiality & Stakeholder Engagement

17

3-2

List of material topics

About Cooper Standard: Materiality & Stakeholder Engagement

17

2-22

GRI

Stakeholder Engagement
GRI

2-29

MATERIAL TOPICS
Disclosure

Disclosure #GRI

WINNING IN THE WORKPLACE
Talent Strategy

GRI

3-3

Management of material topics

Winning in the Workplace: Talent Strategy: Our Approach

25

401-1

New employee hires and employee turnover

Winning in the Workplace: Talent Strategy: Our Performance

34

404-2

Programs for upgrading employee skills and transition
assistance programs

Winning in the Workplace: Talent Strategy: Talent Development

Goal Metric

KPI& Performance Management

27

Internal Fill Rate

Winning in the Workplace: Talent Strategy: Our Performance

34

Total employee turnover

Winning in the Workplace: Talent Strategy: Our Performance

34

Employee voluntary turnover

Winning in the Workplace: Talent Strategy: Our Performance

34

Total employee headcountWinning in the Workplace: Talent Strategy: Our Performance

34

Winning in the Workplace: Talent Strategy: Diversity, Inclusion & Belonging

31

Diversity, Inclusion & Belonging

GRI

KPI

3-3

Management of material topics

405-1

Diversity of governance bodies and employees

Workforce demographics

Winning in the Workplace: Talent Strategy: Diversity, Inclusion & Belonging
Winning in the Workplace: Talent Strategy: Our Performance
Winning in the Workplace: Talent Strategy: Diversity, Inclusion & Belonging
Winning in the Workplace: Talent Strategy: Our Performance

31, 3431, 34

102
Workplace Health & Safety

GRI

3-3

Management of material topics

Winning in the Workplace: Workplace Health & Safety: Our Priorities

36

403-2

Hazard identification, risk assessment, and incident investigation

Winning in the Workplace: Workplace Health & Safety: Our Performance

39

403-5

Worker training on occupational health and safety

Winning in the Workplace: Workplace Health & Safety: Training & Plant Culture38

Safety Balanced Scorecard results

Winning in the Workplace: Workplace Health & Safety

37

Percent of facilities certified to ISO 45001

Winning in the Workplace: Workplace Health & Safety: Our Priorities

39

Lost Time Incident Rate

Winning in the Workplace: Workplace Health & Safety: Our Performance

39

Total Recordable Incident Rate

Winning in the Workplace: Workplace Health & Safety: Our Performance

39

3-3

Management of material topics

Winning in the Workplace: Community Involvement: Our Approach

41

413-1

Operations with local community engagement, impact assessments,
and development programs

Winning in the Workplace: Community Involvement: Our Approach

41

Percent of employees participating

Winning in the Workplace: Community Involvement

40

Total volunteer engagements

Winning in the Workplace: Community Involvement: Our Performance45

Total foundation contributions

Winning in the Workplace: Community Involvement: Our Performance

45

Charities supported

Winning in the Workplace: Community Involvement: Our Performance

45

Employee Volunteer Hours

Winning in the Workplace: Community Involvement: Our Performance

45

48

Goal Metric

KPI
Community Involvement

GRI

Goal Metric

KPI

ENHANCING PRODUCT VALUE
Innovation, Materials & Product Lifecycle

GRI

3-3

Management of material topics

Enhancing Product Value: Innovation, Materials & Product Lifecycle: Our Approach

306-2

Management of significant waste-related impacts

Enhancing Product Value: Innovation, Materials & Product Lifecycle: Our Approach

TR-AP-440b.1

Percentage of products sold that are recyclable

TR-AP-440b.2

Percentage of input materials from recycled
or remanufactured content

With our i3 stage gate innovation process (Imagine, Initiate and Innovate), our
new 4P (Product, Process, Programming and Partnership) and 4C (Connect,
Convey, Communicate and Control) Product Strategies, and our Product Lifecycle
Management system, we differentiate ourselves from our competitors. Our intent
is to decrease the carbon footprint of our products by increasing their recyclability,
reducing their weight, and reducing energy and materials used during the
manufacturing process. We also help our customers optimize their systems topositively impact the economy of fuel-powered and electric vehicles. Enhancing
product performance and aesthetics allows us to be more competitive in the global
markets we serve.

49

TR-AP-410a.1

Revenue from products designed to increase fuel efficiency
and/or reduce emissions

The Company is re-evaluating a better approach to determine the metric “%revenue from products providing resource efficiency benefits” and may share
updated data in our 2023 report.

N/A

SASB

48, 51,80

1 03
Percent of new innovations linked to improved sustainability
outcomes in the production, use, or end-of-life phases

Enhancing Product Value: Innovation, Materials & Product Lifecycle

47

Percent of electric battery vehicles on the road with
CPS innovative materials

Enhancing Product Value: Innovation, Materials & Product Lifecycle

47

Innovation patents

Enhancing Product Value: Innovation, Materials & Product Lifecycle: Our Performance

53

Research & development spend as a percent of revenue

Enhancing Product Value: Innovation, Materials & Product Lifecycle: Our Performance

53

Average innovation idea submission

Enhancing Product Value: Innovation, Materials & Product Lifecycle: Our Performance

53

Major innovations introduced to market

Enhancing Product Value: Innovation, Materials & Product Lifecycle: Our Performance

53

3-3

Management of material topics

Enhancing Product Value: Product Quality & Safety: Our Approach

55

416-1

Assessment of the health and safety impacts of productand service categories

Enhancing Product Value: Product Quality & Safety: Our Approach

55

TR-AP-250a.1

Number of recalls issued

Enhancing Product Value: Product Quality & Safety: Our Performance58

TR-AP-250a.1

Total units recalled

Enhancing Product Value: Product Quality & Safety: Our Performance58

TR-AP-440a.1

Description of the management of risks associated with the use ofcritical materials

Enhancing Product Value: Product Quality & Safety: Reducing Substances of Concern

57

Goal Metric

KPI

Product Quality & Safety

GRI

SASB

Goal Metric

KPI

Percentage of potential safety critical issues reaching customers

Enhancing Product Value: Product Quality & Safety

54

Quality Incidents per Billion

Enhancing Product Value: Product Quality & Safety

54

Voluntary recalls

Enhancing Product Value: Product Quality & Safety: Our Performance

58

Involuntary recalls

Enhancing Product Value: Product Quality & Safety: Our Performance

58

Fines associated with false marketing/advertising

Enhancing Product Value: Product Quality & Safety: Our Performance

58

Violations for non-conformance (with labeling or marketing regulation)

Enhancing Product Value: Product Quality & Safety: Our Performance

58

Management of material topics

Enhancing Product Value: Customer Trust & Satisfaction: Our Approach

60

Percentage of favorable customer scorecards

Enhancing Product Value: Customer Trust & Satisfaction

59

Customer Trust & Satisfaction
GRI

3-3
Goal Metric

RESPONSIBLE BUSINESSBusiness Ethics & Integrity

GRI

SASB

3-3

Management of material topics

Responsible Business: Business Ethics and Integrity: Our Approach

64

205-2

Communication and training about anti-corruption policies
and procedures

Responsible Business: Business Ethics and Integrity: Ethics & Compliance Training

68

Total amount of monetary losses as a result of legal proceedings
associated with anticompetitive behavior regulations$0; We did not have monetary losses as a result of legal proceedings relating toanticompetitive behavior regulations in 2022.

N/A

TR-AP-520a.1

104

Goal Metric

Percent of employees who report knowing where to find the Code of
Conduct and Cooper Standard policies

Responsible Business: Business Ethics and Integrity

63

Percent of employees who report feeling comfortable speaking up

Responsible Business: Business Ethics and Integrity

63

Percent of employees reporting pressure to compromise values

Responsible Business: Business Ethics and Integrity

63

Satisfaction rate for Cooper Standard ethics reporting process

Responsible Business: Business Ethics and Integrity

63

Management of material topics

Responsible Business: Business Continuity: Our Approach

69

Business Continuity
GRI

3-3

Responsible Sourcing
GRI

3-3

SASB

TR-AP-440a.1

KPI

Management of material topics
Description of the management of risks associated with the use ofcritical materials

Responsible Business: Responsible Sourcing, Human Rights & Labor Relations:
Our Approach
Responsible Business: Responsible Sourcing, Human Rights & Labor Relations:
Responsible Sourcing

73

76

Percent of suppliers responding to reasonable country of origin
inquiry (RCOI)

Responsible Minerals Policy

N/A

Number of suppliers sourcing from mines in countries covered by RCOI

Responsible Minerals Policy

N/A

Number of suppliers sourcing requiring outreach regarding RCOI

Responsible Minerals Policy

N/A

Human Rights
GRI

3-3

Goal MetricManagement of material topics

Responsible Business: Responsible Sourcing, Human Rights & Labor Relations:
Our Approach

73

Percent of direct materials Grow suppliers responding
to supplier scorecard

Responsible Business: Responsible Sourcing, Human Rights & Labor Relations

72

Percent of our direct material Grow suppliers that have completed aself-assessment with respect to compliance with our Supplier Code of
Conduct, which includes human rights topics

Responsible Business: Responsible Sourcing, Human Rights & Labor Relations

72

Labor Relations
GRI

3-3

Management of material topics

Responsible Business: Responsible Sourcing, Human Rights & Labor Relations:
Our Approach73

Climate Change, Energy, Emissions & Waste

GRI

3-3

Management of material topics

Responsible Business: Climate Change, Energy, Emissions & Waste: Our Approach

82

302-4

Reduction of energy consumption

Responsible Business: Climate Change, Energy, Emissions & Waste: Our Performance

82

305-1

Direct (Scope 1) GHG emissions

Responsible Business: Climate Change, Energy, Emissions & Waste: Our Performance

84

305-2

Energy indirect (Scope 2) GHG emissions

Responsible Business: Climate Change, Energy, Emissions & Waste: Our Performance

84

GRI &
Goal
Metric305-5

Reduction of GHG emissions

Responsible Business: Climate Change, Energy, Emissions & Waste: Our Performance

82

GRI &
SASB

302-1
TR-AP-130a.1

Energy consumption within the organization

Responsible Business: Climate Change, Energy, Emissions & Waste: Our Performance

84

105
TR-AP-130a.1

Percent grid electricity

100%

N/A

TR-AP-130a.1

Percent renewable

A key component for Cooper Standard’s evolving sustainability strategy is to increase
our renewable energy sources, like biomass, geothermal, solar, wind and water. In
2022, we implemented the ambitious goal to source from 100% renewable energy
sources across our global operations by 2025. We have decided to move away fromthis goal as we reassess our approach to renewable energy. Instead, we have formeda cross-functional Carbon Neutrality Action Committee to assess our approach more
fully to reducing carbon emissions and redefine our long-term goals.

82

TR-AP-150a.1

Percent of generated waste that is hazardous

TR-AP-150a.1

Percent of waste recycled

TR-AP-150a.1

Total manufacturing waste generated

Responsible Business: Climate Change, Energy, Emissions & Waste: Our Performance

79

Energy consumption

Responsible Business: Climate Change, Energy, Emissions & Waste: Our Priorities

79

Renewable Energy consumption

Responsible Business: Climate Change, Energy, Emissions & Waste: Our Priorities

79

Reduction in Scope 1 & 2 GHG emissions

Responsible Business: Climate Change, Energy, Emissions & Waste: Our Priorities

79

Percent of global waste diversion

Responsible Business: Climate Change, Energy, Emissions & Waste: Our Priorities

79

Percent of facilities certified to ISO 14001

Responsible Business: Climate Change, Energy, Emissions & Waste: Our Performance84

Total electric power

Responsible Business: Climate Change, Energy, Emissions & Waste: Our Performance

84

Percent of facilities reporting diversion rate >90%

Responsible Business: Climate Change, Energy, Emissions & Waste: Our Performance

84

SASB

SASB &
Goal
MetricGoal Metric

KPI

Responsible Business: Climate Change, Energy, Emissions & Waste: Operational Waste& Waste Management
Responsible Business: Climate Change, Energy, Emissions & Waste: Operational Waste& Waste Management

79

79

Data Privacy, Cyber Security & Digitization

GRI

3-3

Management of material topics

Responsible Business: Data Privacy, Cyber Security & Digitization: Our Approach

86

418-1

Substantiated complaints concerning breaches of customer privacy
and losses of customer data

Responsible Business: Data Privacy, Cyber Security & Digitization: Our Approach

86

Percent of employees trained annually on information security practices

Responsible Business: Data Privacy, Cyber Security & Digitization

85

Percent of employees who work with our systems formally trained on
cyber security by end of 2022

Responsible Business: Data Privacy, Cyber Security & Digitization

85

Percent of third-party vendors who pose critical or high risk to
Cooper Standard systems or information assessed

Responsible Business: Data Privacy, Cyber Security & Digitization

85

Goal Metric

106

FINANCIAL STATEMENTS
Forward-Looking Statements

Non-GAAP Financial Measures

This report includes “forward-looking statements” within the meaning of U.S. federal securities laws, and we intend
that such forward-looking statements be subject to the safe harbor created thereby. Our use of words “estimate,”“expect,” “anticipate,” “project,” “plan,” “intend,” “believe,” “outlook”, “guidance”, “forecast,” or future or conditionalverbs, such as “will,” “should,” “could,” “would,” or “may,” and variations of such words or similar expressions areintended to identify forward-looking statements. All forward-looking statements are based upon our current
expectations and various assumptions. Our expectations, beliefs, and projections are expressed in good faith andwe believe there is a reasonable basis for them. However, we cannot assure you that these expectations, beliefs andprojections will be achieved. Forward looking statements are not guarantees of future performance and are subject
to significant risks and uncertainties that may cause actual results or achievements to be materially different fromthe future results or achievements expressed or implied by the forward-looking statements. Among other items,
such factors may include: volatility or decline of the Company’s stock price, or absence of stock price appreciation;
impacts, including commodity cost increases and disruptions related to the war in Ukraine and the COVID-related
lockdowns in China; our ability to achieve commercial recoveries and to offset the adverse impact of higher
commodity and other costs through pricing and other negotiations with our customers; the impact, and expected
continued impact, of the COVID-19 outbreak on our financial condition and results of operations; significant risks
to our liquidity presented by the COVID-19 pandemic risk; prolonged or material contractions in automotive sales
and production volumes; our inability to realize sales represented by awarded business; escalating pricing pressures;loss of large customers or significant platforms; our ability to successfully compete in the automotive parts industry;
availability and increasing volatility in costs of manufactured components and raw materials; disruption in our
supply base; competitive threats and commercial risks associated with our diversification strategy through our
Advanced Technology Group; possible variability of our working capital requirements; risks associated with ourinternational operations, including changes in laws, regulations, and policies governing the terms of foreign tradesuch as increased trade restrictions and tariffs; foreign currency exchange rate fluctuations; our ability to control theoperations of our joint ventures for our sole benefit; our substantial amount of indebtedness and variable rates ofinterest; our ability to obtain adequate financing sources in the future; operating and financial restrictions imposedon us under our debt instruments; the underfunding of our pension plans; significant changes in discount rates
and the actual return on pension assets; effectiveness of continuous improvement programs and other cost savings
plans; manufacturing facility closings or consolidation; our ability to execute new program launches; our ability tomeet customers’ needs for new and improved products; the possibility that our acquisitions and divestitures may
not be successful; product liability, warranty and recall claims brought against us; laws and regulations, including
environmental, health and safety laws and regulations; legal and regulatory proceedings, claims or investigations
against us; work stoppages or other labor disruptions; the ability of our intellectual property to withstand legal
challenges; cyber-attacks, data privacy concerns, other disruptions in, or the inability to implement upgrades to, ourinformation technology systems; the possible volatility of our annual effective tax rate; the possibility of a failure to
maintain effective controls and procedures; the possibility of future impairment charges to our goodwill and longlived assets; our ability to identify, attract, develop and retain a skilled, engaged and diverse workforce; our ability to
procure insurance at reasonable rates; and our dependence on our subsidiaries for cash to satisfy our obligations.

EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss), adjusted earnings (loss) per shareand free cash flow are measures not recognized under U.S. GAAP and which exclude certain non-cash and special
items that may obscure trends and operating performance not indicative of the Company’s core financial activities.
Net new business is a measure not recognized under U.S. GAAP which is a representation of potential incremental
future revenue but which may not fully reflect all external impacts to future revenue. Management considers
EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss), adjusted earnings (loss) per share,
free cash flow and net new business to be key indicators of the Company’s operating performance and believes
that these and similar measures are widely used by investors, securities analysts and other interested parties in
evaluating the Company’s performance. In addition, similar measures are utilized in the calculation of the financial
covenants and ratios contained in the Company’s financing arrangements and management uses these measuresfor developing internal budgets and forecasting purposes. EBITDA is defined as net income (loss) adjusted to reflect
income tax expense (benefit), interest expense net of interest income, depreciation and amortization, and adjusted
EBITDA is defined as EBITDA further adjusted to reflect certain items that management does not consider tobe reflective of the Company’s core operating performance. Adjusted net income (loss) is defined as net income(loss) adjusted to reflect certain items that management does not consider to be reflective of the Company’s core
operating performance. Adjusted EBITDA margin is defined as adjusted EBITDA as a percentage of sales. Adjusted
basic and diluted earnings (loss) per share is defined as adjusted net income (loss) divided by the weighted average
number of basic and diluted shares, respectively, outstanding during the period. Free cash flow is defined as net
cash provided by operating activities minus capital expenditures and is useful to both management and investorsin evaluating the Company’s ability to service and repay its debt. Net new business reflects anticipated sales fromformally awarded programs, less lost business, discontinued programs and replacement programs and is basedon S&P Global (IHS Markit) forecast production volumes. The calculation of “net new business” does not reflect
customer price reductions on existing programs and may be impacted by various assumptions embedded in therespective calculation, including actual vehicle production levels on new programs, foreign exchange rates and thetiming of major program launches.

You should not place undue reliance on these forward-looking statements. Our forward-looking statements
speak only as of the date of this report and we undertake no obligation to publicly update or otherwise revise any
forward-looking statement, whether as a result of new information, future events or otherwise, except where we areexpressly required to do so by law.
This report also contains estimates and other information that is based on industry publications, surveys, andforecasts. This information involves a number of assumptions and limitations, and we have not independently
verified the accuracy or completeness of the information.

When analyzing the Company’s operating performance, investors should use EBITDA, adjusted EBITDA, adjusted
EBITDA margin, adjusted net income (loss), adjusted earnings (loss) per share, free cash flow and net new businessas supplements to, and not as alternatives for, net income (loss), operating income, or any other performancemeasure derived in accordance with U.S. GAAP, and not as an alternative to cash flow from operating activities as ameasure of the Company’s liquidity. EBITDA, adjusted EBITDA, adjusted net income (loss), adjusted earnings (loss)
per share, free cash flow and net new business have limitations as analytical tools and should not be considered
in isolation or as substitutes for analysis of the Company’s results of operations as reported under U.S. GAAP. Other
companies may report EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss), adjusted
earnings (loss) per share, free cash flow and net new business differently and therefore the Company’s results
may not be comparable to other similarly titled measures of other companies. In addition, in evaluating adjusted
EBITDA and adjusted net income (loss), it should be noted that in the future the Company may incur expenses
similar to or in excess of the adjustments in the report. This report of adjusted EBITDA and adjusted net income(loss) should not be construed as an inference that the Company’s future results will be unaffected by special items.
Reconciliations of EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss) and free cash
flow follow.

1 07

Non-GAAP Reconciliations
The following table provides a reconciliation of EBITDA, adjusted EBITDA and free cash flow from net cash (used in) provided by operating activities, which are the most comparable financial
measures in accordance with U.S. GAAP:

Year End December 31
2022

2021

2022

Dollar Amount in Thousands
Net (loss) income attributable to
Cooper-Standard Holdings Inc.
Income tax (benefit) expense$(215,384)$(322,835)$(267,605)

17,29139,392(60,847)

Interest expense, net of interest income

78,51472,511

59,167

122,476

139,008

154,229

2,897(71,924)(115,056)

18,30436,95039,482

Restructuring charges
Deconsolidation of joint venture(1)

Impairment charges (2)Gain on sale of business, net (3)Gain on sale of fixed assts, net(4)Lease termination costs (5)Indirect tax and customs adjustments (6)

2,257

-

-

43,71025,609103,887-(696)(2,834)(33,391)

-

-

-

748

771

1,409

-

-

2,682

1,279

184

Project costs (8)

-

-

5,648

Divested noncontrolling interest
debt extinguishment

-

-

3,595

$37,868$(8,034)$35,677

Pension settlement and curtailment charges

Adjusted EBITDA

Sales

(7)

2021

2020

Dollar Amount in Thousands

Depreciation and amortization
EBITDA

Year End December 31

Free Cash Flow2020

Net cash (used in) provided by operating activities
Capital expenditures
Free cash flow$(36,150)$(115,510)$(15,934)(71,150)(96,107)(91,794)$(107,300)$(211,617)$(107,728)(1)

Loss attributable to deconsolidation of a joint venture in the Asia Pacific region, which required adjustment
to fair value.

(2)

Non-cash impairment charges in 2022 related to recent operating performance and idle assets in certain
locations in North America, Europe and Asia Pacific. Impairment charges in 2021 related to fixed assets andgoodwill. Impairment charges in 2020 included impairment of assets held for sale and other impairment
charges related to fixed assets and right-of-use operating lease assets, net of portion attributable to our
noncontrolling interests.

(3)

During 2021, the Company recorded subsequent adjustments to the net gain on sale of business, which
related to the 2020 divestiture of our European rubber fluid transfer and specialty sealing businesses, as wellas its Indian operations. In 2020, the gain on sale of business primarily related to divestitures.

(4)

In 2022, the Company recognized a gain on a sale-leaseback agreement on one of its European facilities.

(5)

Lease termination costs no longer recorded as restructuring charges in accordance with ASC 842, Leases.

$2,525,391$2,330,191$2,375,439(6)Impact of prior period indirect tax and customs adjustments.

Net (loss) income margin(8.5%)(13.9)%(11.3)%(7)

Adjusted EBITDA margin

1.5%(0.3)%

1.5%

Non-cash net pension settlement and curtailment charges and administrative fees incurred related tocertain of our U.S. and non-U.S. pension plans.

(8)

Project costs recorded in selling, administration and engineering expense related to acquisitions and divestitures.

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